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On two investments totaling $9,000, Lydia lost 4% on one and earned 6 % on the other. If her net annual receipts were $170, how muchwas each investment?

On two investments totaling $9,000, Lydia lost 4% on one and earned 6 % on the other-example-1
User Tony Friz
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1 Answer

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8 votes

Answer

The investment at -4% is $3700

The investest made at +6% is $5300

Explanation:

Given

The total amount of the two investments = $9000

She lost 4% on one and gained 6% on the other

Let x represents the first investment

Let y represents the second investment

Since the two investments make a total of $9000

This can be expressed mathematically as

x + y = 9000 ---------------- equation 1

If she lost 4% on one of the investments and earned 6% in the other investment

Then this can be expressed as

-0.04x + 0.06y = 170

-0.04x + 0.06y = 170 ---------- equation 2

These two systems of the linear equation can be solved simultaneously

x + y = 9000 ------------- equation 1

-0.04xx + 0.06y = 170 ---- equation 2

We will be using the substitution method to solve the above equations

Make the x the subject of the formula in equation 1

x = 9000 - y

Substitute the value of x into equation 2

-0.04(9000 - y) + 0.06y = 170

Open the parentheses

-360 + 0.04y + 0.06y = 170

Collect the like terms

0.04y + 0.06y = 170 + 360

0.1 y = 530

Divide both sides by 0.1

y = 530 / 0.1

y = $5300

From equation 1

x + y = 9000

y = $5300

x = 9000 - y

x = 9000 - 5300

x = $3700

User Azzam
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