Question

Tony invested his savings in two investment funds. The S6000 that he invested in Fund A returned a 3% profit. The amount that he invested in Fund B returneda 10% profit, How much did he invest in Fund B, if both funds together returned a 7% profit?Amount invested in Fund B:?

Answer 1

Let x be the amount invested in fund B

Then the total amount invested in both funds is (x + 6000) dollars

Knowing that, if a initial investment in a fund is P and the profit rate is r, the total amount earned is given by:

`r\cdot P`

We have:

`\begin{gathered} 0.03\cdot6000+0.10\cdot x=0.07\cdot(x+6000) \\ 180+0.1x=0.07x+420 \\ 0.1x-0.07x=420-180 \\ 0.03x=240 \\ x=(240)/(0.03) \\ x=\text{ \$8000} \end{gathered}`

Answer: Tony invested $8000 in fund B