Question

Brian invested his savings in two investment funds. The $8000 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?

Answer 1

Answer: Brian invested $16000 in Fund B .

Explanation:

Let x be the amount Brian invested in Fund B.

Given, The $8000 that he invested in Fund A returned a 4% profit. The amount that he invested in Fund B returned a 1% profit.

i.e. profit on Fund A = 4% of 8000 = 0.04 ×8000 = $320

Profit on Fund B = 1% of x = 0.01x

Together they earn 1% profit, i.e. Combined profit = 2% of (8000+x)

= 0.02(8000+x)

As per question,

Combined profit=Profit on Fund A+Profit on Fund B

`\Rightarrow\ 0.02(8000+x) =320+0.01x\\\\\Rightarrow\ 0.02(8000) +0.02x=320+0.01x\\\\\Rightarrow\ 160+0.02x=320+0.01x\\\\\Rightarrow\ 0.02x-0.01x=320-160\\\\\Rightarrow\ 0.01x=160\\\\\Rightarrow\ x=(160)/(0.01)\\\\\Rightarrow\ x=16000`

Hence, Brian invested $16000 in Fund B .