Question

Justin invested his savings in two investment funds. The $8000 he invested in Fund A returned a 10% profit. The amount he invested in Fund B returned a 3% profit. How much did he invest in Fund B, if both funds together returned a 7% profit?

Answer 1

$6000

Explanation:

Profit from the investment of $8000 in fund A

= 10% × $8000

= $800

Let the amount invested in fund B be $Y

Profit from the investment of $Y in fund B

= 3% × $Y

= $0.03Y

if both funds together returned a 7% profit

800 + 0.03Y = 7% (8000 + Y)

800 + 0.03Y = 560 + 0.07Y

Collect like terms

0.07Y - 0.03Y = 800 - 560

0.04Y = 240

Y = 240/0.04

Y = 6000

Amount invested in Fund B is $6000