Question

Rafael invested his savings in two investment funds. The $4000 that he invested in Fund A returned a 4% profit. The amount that he invested in Fund B returned a 1% profit. How much did he invest in Fund B, if both funds together returned a 2% profit?Amount invested in Fund B: ?

Answer 1

Step-by-step explanation:

We are given that there are two investments made by Rafael. One yielded a 4% profit (Fund A), and the other yielded a 1% profit (Fund B). If both funds together returned a total of 2% profit then we can set up the following equation;

`\left(A+B\right)*2\%=Profit`

From the details given we can also deduce the following;

`\left(A*4\%)\right?+\left(B*1\%\right)=\left(A+B\right)*2\%`

Note that he invested $4000 in Fund A, and we can now substitute for the value of A into the equation;

`\lparen4000*0.04)+\left(B*0.01\right)=\left(4000+B\right)*0.02`

We can simplify the right side of the equation further;

`160+0.01B=80+0.02B`

Next we combine like terms;

`\begin{gathered} 160-80=0.02B-0.01B \\ 80=0.01B \end{gathered}`

Divide both sides by 0.01;

`\begin{gathered} (80)/(0.01)=(0.01B)/(0.01) \\ 8000=B \end{gathered}`

ANSWER:

Amount invested in Fund B = $8,000