Question

Jamie invests money. In the first year it increases to 110% of its original value.

He spends 20% of the profit on a cricket bat and 1/8 of the reminder on a cricket jumper.
He is left with £140 profit. How much did Jamie invest?

Answer 1

£2000

Explanation:

Let the money invested be x.

After 1 year, the money is now 110% of x = 1.1x

Original amount of money: x

Profit in 1 year: 0.1x

He spends 20% of the profit on a cricket bat.

0.2 * 0.1x = 0.02x spent on cricket bat

The reminder of the profit is 0.8 * 0.1x = 0.08x

He spends 1/8 * 0.08x on a cricket jumper.

Amount of profit he has:

0.1x - 0.02x - 0.125 * 0.08x

This equals £140

0.1x - 0.02x - 0.125 * 0.08x = 140

0.08x - 0.01x = 140

0.07x = 140

x = 140/0.07

x = 2000

Answer: £2000