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How much did he invest in fund b if both funds together returned a 8% profit

How much did he invest in fund b if both funds together returned a 8% profit-example-1
User Anshul Nigam
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1 Answer

21 votes
21 votes

Let x the amount invested in fund B, then, you have that fund B returned 0.1*x (10% of the investment ) and fund A returned 0.03*4000 = 120 (3% of the investment)

Moreover, both funds returned together 8%, that is, it returned

0.08*(x + 4000).

Now, consider that amount returned by both funds equal the sum of the amount returned by each fund, then, you have:

0.1x + 120 = 0.08(x + 4000) expand the factor right side

0.1x + 120 = 0.08x + 320 subtrac 0.08x and subtract 120 both sides

0.1x - 0.08x = 320 - 120 simplify like terms

0.02x = 200 divide by 0.02 both sides

x = 200/0.02

x = 10000

Hence, the investment in fund B was $10000

User Gelisam
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