Question

Jane invested her savings in two investment funds. The amount she invested in Fund A was $6000 less than the amount she invested in Fund B. Fund A returned a 8% profit and Fund B returned a 2% profit. How much did she invest in Fund B, if the total profit from the two funds together was $1220 ?

Answer 1

Jane invested $37,000 in Fund B.

Explanation:

Let;

IA = Amount invested in Fund A = $6,000

IB = Amount invested in Fund B = ?

PA = Amount of profit from Fund A = IA * 8% = $6,000 * 8% = $480

PB = Amount of profit from Fund B = IB * 2%

Therefore, we have:

Total profit = PA + PB = $1220 ........................ (1)

Substitute the relevant values into equation (1) and solve for IB, we have:

$480 + (IB * 2%) = $1220

IB * 2% = $1220 - $480

IB * 2% = 740

IB = 740 / 2%

IB = $37,000

Therefor, Jane invested $37,000 in Fund B.