Question

On two investments totaling $15,000, Peter lost 2% on one and earned 8% on the other. If his net annual receipts were $456, how much was each investment?

Answer 1

the total investments were $15,000

so x+y=15,000 (x and y is the amount peter invest in each one)

he lost 2% on one ( - 0.02*x) and earned 8% on the other one (+0.08*y)

and the net annual is:

-0.02*x+0.08*y=456

so now we solve the equations

x= 15,000-y

-0.02*x+0.08*y=456

-0.02*(15,000-y)+0.08*y=456

-300+0.02y+0.08y=456

0.1y=456+300

0.1*y=756

y=756/0.1= $7560

and x=15,000-y= 15,000-7560=7440

So the answer is: the investments were $7560 and $7440