Question

Susan Marciano invested part of her $34,000 bonus in a fund that paid an 11% profit and invested the rest in stock that suffered a 5% loss. Find the amount of each investment if her overall net profit was $860. The amount invested at 11% is $_____ The amount invested in stock is _______

Answer 1

Let's denote the amount invested at 11% as x dollars and the amount invested in stock as (34,000 - x) dollars.

The profit from the investment at 11% is 0.11x dollars, while the loss from the stock investment is 0.05(34,000 - x) dollars.

The total net profit is the sum of these two amounts, so we have the equation:

0.11x - 0.05(34,000 - x) = 860

Simplifying and solving for x:

0.11x - 0.05*34,000 + 0.05x = 860

0.16x - 0.05*34,000 = 860

0.16x - 1,700 = 860

0.16x = 2,560

x = 2,560 / 0.16

x ≈ 16,000

Therefore, Susan invested approximately $16,000 at 11% and the rest, $34,000 - $16,000 = $18,000, in stock.