Question

Tammy invested her savings in two investment funds. The amount she invested in Fund A was $3000 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 $1720?

Answer 1

Tammy invested $14000 in Fund B. We determined this by setting up a system of equations based on the information provided about the difference in investment amounts and the individual fund profits, then solving for the unknown amount.

Step-by-step explanation:

The question involves setting up and solving a system of equations to find out how much Tammy invested in Fund B, given the total profit from both funds and the individual profit percentages.

Step-by-Step Solution

1. Let's denote the amount Tammy invested in Fund B as B, and the amount in Fund A as A. From the information provided, A = B - $3000.
2. Since Fund A returned an 8% profit and Fund B returned a 6% profit, the total profit can be represented as 0.08A + 0.06B = $1720.
3. Substituting A = B - $3000 into the equation: 0.08(B - $3000) + 0.06B = $1720. Now let's solve for B.
4. Expand and combine like terms: 0.08B - $240 + 0.06B = $1720, which simplifies to 0.14B = $1960.
5. Divide both sides by 0.14 to find B: B = $1960 / 0.14, resulting in B = $14000.

Therefore, Tammy invested $14000 in Fund B.