Question

Miguel invested his savings in two investment funds. The $16,000that he invested in Fund A returned a 10 % profit. The amount that 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

Miguel invested $16,000 in Fund B.

Step-by-step explanation:

To find out how much Miguel invested in Fund B, we can set up a system of equations using the information given. Let x represent the amount Miguel invested in Fund B.

From the first sentence, it is given that the amount Miguel invested in Fund A is $16,000. This returned a 10% profit, so the profit from Fund A is 0.1 * $16,000 = $1,600.

The total amount Miguel invested in both funds is $16,000 + x, and the total profit from both funds is 7% of that amount. So, the total profit is 0.07 * ($16,000 + x).

Since the total profit is the sum of the profits from Fund A and Fund B, we have the equation:

$1,600 + 0.07 * ($16,000 + x) = 0.07 * ($16,000)

Simplifying this equation gives:

$1,600 + 0.07x + 0.07 * $16,000 = 0.07 * $16,000

Combining like terms and solving for x:

0.07x = 0.07 * $16,000 - $1,600

0.07x = $1,120

x = $1,120 / 0.07

x = $16,000

Therefore, Miguel invested $16,000 in Fund B.