Question

Latoya invested her savings in two investment funds. The $5000 that she invested in Fund A returned a 10% profit. The amount that she invested in Fund B returned a 39% profit. How much did she invest in Fund B if both funds together returned an 8% profit?

Answer 1

Latoya invested approximately $322.58 in Fund B to achieve an overall 8% profit on her total investments when combining Fund A and Fund B.

Step-by-step explanation:

The subject of this question is Mathematics, dealing with investments and percentage profit calculation. Latoya invested $5000 in Fund A with a 10% return and an unspecified amount in Fund B with a 39% return. The total return from both funds was an 8% profit. To find out how much was invested in Fund B, we can set up an equation.

Let's denote the amount invested in Fund B as x. The total profit from Fund A is 10% of $5000, which is $500. The total profit from Fund B is 39% of x, which is 0.39x. The total investment is $5000 + x, and the total profit from both investments is 8% of the total investment, which equals 0.08($5000 + x).

We set up the equation with total profits:

$500 + 0.39x = 0.08($5000 + x)

Now we solve for x:

$500 + 0.39x = $400 + 0.08x

0.31x = $100

x = $100 / 0.31

x = $322.58 (approximately)

Therefore, Latoya invested approximately $322.58 in Fund B to get an overall 8% return on her total investment.