Question

Karen invested her savings in two investment funds. The amount she invested in fund A. was $2000 less than the amount she invested in fund B. Fund A returned a 8% profit and fund B returned a 6% profit. How much did she invest in fund B, if the total profit from the two funds together was $1940

Answer 1

Step 1:

Let the invested on B = m

Amount invested on A = m - 2000

Step 2

Profit is in percentage of the cost of investment

A profit is 8%

`\begin{gathered} A\text{ profit = 8\% of m - 200}0 \\ =\text{ }(8)/(100)\text{ }*\text{ (m - 2000)} \\ =\text{ 0.08m - 16}0 \end{gathered}`
`\begin{gathered} B\text{ profit = 6\% of m} \\ =\text{ 0.06m} \end{gathered}`

Step 3

Total profit = $1940

`\begin{gathered} 0.08m\text{ - 160 + 0.06m = 1940} \\ 0.14m\text{ = 1940 + 16}0 \\ 0.14m\text{ = 2}100 \\ m\text{ = }(2100)/(0.14) \\ \text{m = \$15000} \end{gathered}`

Final answer

She invested $15,000 in fund B