Question

Dale invested his savings in two investment funds. The $4000 that he invested in Fund A returned a 5% profit. The amount that he invested in Fund B returned a 2% profit. How much did he invest in Fund B, if both funds together returned a 3% profit?

Answer 1

Dale invested in fund B $8,000

Explanation:

We can arrange the given information into the nex equation:

4000*5% + x*2% = (4000+x)*3%

4000*0.05 + 0.02x = 4000*0.03 + 0.03x

200 + 0.02x = 120 + 0.03x

200 - 120 = 0.03x - 0.02x

80 = 0.01x

x = 80/0.01

x = 8,000 He invested in fund B.