Question

Latoya invested her savings in two investment funds. The $12,000 that she invested in Fund A returned a 3% profit. The amount that she invested in Fund B returned a 10% profit. How much did she invest in Fund B, if both funds together returned a 7% profit?

a. $2,000
b. $5,000
c. $7,000
d. $10,000

Answer 1

To find out how much Latoya invested in Fund B with a 7% overall profit for both funds, use the weighted average formula. The amount invested in Fund B is $7,000.

Step-by-step explanation:

To find out how much Latoya invested in Fund B, we need to use the weighted average formula for two investments. Let x be the amount she invested in Fund B. The percentage of profit for Fund A is 3% and for Fund B is 10%. The total percentage profit for both funds is 7%. Therefore, we can write the equation:

(3% * $12,000 + 10% * x) / ($12,000 + x) = 7%.

Solving for x gives us the amount that Latoya invested in Fund B, which is $7,000. Therefore, the answer is c. $7,000.