Question

An investment firm invested in two companies last year. They invested $40,000 in company A and made a profit of 15%. They invested $10,000 in company B and made a profit of 22%

Answer 1

A) $8200.

B) 16.4%

Explanation:

Here is the complete question: An investment firm invested in two companies last year. They invested $40,000 in company A and made a profit of 15%. They invested $10,000 in company B and made a profit of 22%.

A) What is the investment firms total profit?

B) What is the percent profit of the total investment?

Given: Company A invested $40000 and made profit of 15%

Company B invested $10000 and made profit of 22%

A) First lets find the profit of company A and B.

Company A=
`(15)/(100) * \$ 40000= \$ 6000.`

∴ Profit of company A is $6000.

Company B=
`(22)/(100) * \$ 10000= \$ 2200`

∴ Profit of company B is $2200.

Total profit= profit of company A+ profit of company B

⇒
`Total\ profit= \$ 6000+\$ 2200`

∴ Total Profit=
`\$ 8200`

Hence, the total profit of investment firm is $8200.

B) Now finding the percentage of total profit made by firm.

Total investment by the firm=
`\$ 40000+\$ 10000= \$ 50000`

∴ Total investment done by the firm is $50000.

Percent of profit=
`(Total\ profit)/(Total\ investment) * 100`

⇒ Percent of profit=
`(8200)/(50000) * 100`

⇒ Percent of profit=
`(82)/(5) = 16.4\%`

Hence, 16.4% is the percent profit of the total investment.