Question

Susan invested her savings in two investment funds. The $18,000 that she invested in Fund A returned a 5% profit. The amount that she invested in Fund B returned a 1%nprofit. How much did she invest in Fund B, if both funds together returned a 4% profit?

Answer 1

Susan invested $4,500 in Fund B.

Explanation:

Let's denote the amount Susan invested in Fund A as "x" dollars, and the amount she invested in Fund B as "18000 - x" dollars (since she invested a total of $18,000 in both funds).

The formula to calculate the total profit when investing in two funds is:

Total Profit = (Amount in Fund A * Profit Rate of Fund A) + (Amount in Fund B * Profit Rate of Fund B)

Given that the total profit is 4% of the total amount invested, we can set up the equation:

Total Profit = 0.04 * Total Investment

Plugging in the values for Fund A and Fund B:

(x * 0.05) + ((18000 - x) * 0.01) = 0.04 * 18000

Simplify the equation:

0.05x + 0.01(18000 - x) = 720

0.05x + 180 - 0.01x = 720

0.04x = 540

Now, solve for "x":

x = 540 / 0.04

x = 13500

So, Susan invested $13,500 in Fund A. To find the amount she invested in Fund B:

Amount in Fund B = Total Investment - Amount in Fund A

Amount in Fund B = 18000 - 13500

Amount in Fund B = 4500

Susan invested $4,500 in Fund B.