Question

Scott invested his savings in two investment funds. The
$8000
that he invested in Fund A returned a
7%
profit. The amount that he invested in Fund B returned a
2%
profit. How much did he invest in Fund B, if both funds together returned a
4%
profit?

Answer 1

`The $8000 that he invested in Fund A returned a 7% profit`

this means that Scott earned 0.07*8000 = 560 dollars in profit from fund A alone


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`The amount that he invested in Fund B returned a 2% profit`

meaning that he earned 0.02x dollars from Fund B alone where x is the amount invested in Fund B. It's unknown for now.


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In total, the profits from A and B combine to 560+0.02x dollars


Is this making sense so far?

Answer 2

Yes, it makes perfect sense! :)

Answer 3

ok great

Answer 4

now we know $8000 was invested in fund A
x dollars is put into fund B

in total, he put 8000+x dollars into both funds

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we are told that `both funds together returned a 4% profit` meaning that you take 4% of the total and that's the profit made

ie,

4% of total = 0.04*(8000+x) = total profit made

Answer 5

earlier I showed how 560+0.02x dollars was also the total profit

the two total profits are the same, so equate them

560+0.02x = 0.04*(8000+x)

now solve for x to get your answer

Answer 6

Awesome thank you so much!!! :)
Just curious, where did 560 come from?

Answer 7

the profit made in fund A

7% of 8000 = 0.07*8000 = 560

Answer 8

Oh wait a minute...I just went back up and found that out haha. But again, thank you so much for your help!

Answer 9

that's ok and you're welcome

Answer 10

Does the answer 12,000 sound right to you?

Answer 11

12,000 dollars is the amount invested in fund B, correct

Answer 12

Yes

Answer 13

Ok it's ok it was right! Thanks! :)

Answer 14

Theres one more, would you be able to help me please?

Answer 15

sure go ahead