Problema Solution

Lisa invested her savings in two investment funds. The amount she invested in Fund A was $2000 less than the amount she invested in Fund B. Fund A returned a 6% profit and Fund B returned a 4% profit. How much did she invest in Fund B, if the total profit from the two funds together was $880?

Answer provided by our tutors

simple interest = principal * rate * time


we take time to be equal to 1


let 'x' represent the amount invested at 6% (Fund A), then 'x+2000' represents the amount invested at 4% (Fund B)


880 = 0.06x + 0.04(x+2000)

solving for 'x' we have x=8000


8000+2000 = 10000


$8,000 was invested at 6%, $2,000 was invested at 4%