Problema Solution

Jim purchased 2 pieces of property that had been foreclosed on by a local bank

for a total

of $330,000. When he sold these properties, on the

first

piece

Jim

earned a profit of 12%

but on the second piece he lost 8%. His total profit was $18,000. How much did

Jim

pay for each property

Answer provided by our tutors

Let

x = the amount paid for the first piece

y = the amount paid for the second piece

x + y = 330000

0.12x - 0.08y = 18000

........

click here to see the system of equations solved for x and y

........

x = $222,000

y = $108,000

Jim paid $222,000 for the first piece and $108,000 for the second piece of property.