Question

A man invested a certain amount of money in two separate projects in the ration 3:2. His profit was calculated on interest rates of 5% and 4% simple interest, respectively. If after two years, he received a sum of GH¢9,200.00 as his profit for the two projects, calculate the total amount he invested in the two projects.

Answer 1

100,000

Explanation:

Investment ratio = 3 : 2

Rate = 5% and 4% simple interest

Total interest after 2 years = 9200

Let total investment = t

(3/5t * 0.05 * 2) + (2/5t * 0.04 * 2) = 9200

3/5t * 0.1 + 2/5t * 0.08 = 9200

0.06t + 0.032t = 9200

0.092t = 9200

t = 9200 / 0.092

t = 100,000