Question

Jane invested her savings in two investment funds. The $2000 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 8% profit?

Answer 1

Fund A, Jane invested $2000 and has a profit of 3%

Profit at Fund A is :

`\$2000*0.03=\$60`

at Fund B, let $x be the amount she invested that gives her a profit of 10%

The profit at Fund B is :

`\$x*0.10=\$0.10x`

It is said that the total amount she invested returned a 8% profit

The total amount she invested is :

`\$2000+\$x`

and the 8% profit of her total investment is :

`(2000+x)*0.08=160+0.08x`

Now we need to equate the sum of her profits from Fund A and Fund B, and this must be equal to the 8% profit.

3% Profit at Fund A = $60

10% Profit at Fund B = $0.10x

8% Profit at both funds together = 160 + 0.08x

`\begin{gathered} 60+0.10x=160+0.08x \\ 0.10x-0.08x=160-60 \\ 0.02x=100 \\ x=(100)/(0.02)=5000 \end{gathered}`

Therefore, the amount she invested in Fund B is $5000