Question

An investment firm invested in two companies last year. They invested $20,000 in Company A and made a profit of 16%. They invested $12,000 in Company B

and made a profit of 14%.
Answer the questions below. Do not do any rounding.
(a) What was the investment firm's total profit?
(b) What was the percent profit for their total investment?
0%

Answer 1

The total profit from both Company A and Company B is $4,880. The percent profit for the investment firm's total investment is approximately 15.25%.

Step-by-step explanation:

To calculate the investment firm's total profit from Company A and Company B, we need to apply the percentage profit for each investment and then sum the amounts.

Profit from Company A

Investment: $20,000
Profit percentage: 16%
Profit = Investment × Profit percentage
Profit from Company A = $20,000 × 0.16 = $3,200

Profit from Company B

Investment: $12,000
Profit percentage: 14%
Profit = Investment × Profit percentage
Profit from Company B = $12,000 × 0.14 = $1,680

Total profit = Profit from Company A + Profit from Company B
Total profit = $3,200 + $1,680 = $4,880

Percent Profit for Total Investment

Total investment = Investment in Company A + Investment in Company B
Total investment = $20,000 + $12,000 = $32,000
Percent profit = (Total profit / Total investment) × 100%
Percent profit = ($4,880 / $32,000) × 100% ≈ 15.25%

Answer 2

See below

Step-by-step explanation:

Profit A 20 000 * .16 = 3200

Profit B 12 000 * .14 = 1680

total profit = 4880 for investing 32000

4880 / 32000 = 15.25%