Question

Mr eliot is extremely careful with his money. He recently invested part of his $150,000 life savings in gold bullion and the rest in a bank he claims to have a nuclear blast proof safe. Mr elliot earned a 5% profit on his gold bullion investment and a 3% profit on the money in the bank. If he made a total profit of $5,500 from both investments, how much did he invest in gold bullion?

Answer 1

The amount invested in gold bullion by Mr. Eliot = $50,000

Explanation:

Total amount of savings Me. Eliot ha s = $150,000

Let us assume the amount invested in gold bullion = $m

So, the amount invested in bank = $150,000 - m

Now, 5% on m =
`(5)/(100)  * m = 0.05 m`

So, the profit in gold bullion = 0.05 m

and 3% on (150,000 -m) =
`(3)/(100)  *  (150,000 -m)</p><p> = 0.03  (150,000 -m)`

= 4,500 - 0.03 m

So, the profit in bank = 4,500 - 0.03 m

Now, the total profit = $5,500

⇒Profit from gold bullion + ban = $5,500

⇒0.05 m + 4,500 - 0.03 m = $5,500

or, 0.02 m = 1000

⇒ m = 1000/0.02 = 50,000

Hence, the amount invested in gold bullion = m = $50,000