Problema Solution
Susan invested part of her $40000 bonus in a fund that paid a 12% profit and invested the rest in stock that suffered a 4% loss. Find the amount of each investment if her overall net profit was $960
Answer provided by our tutors
let 'x' represent the amount invested at 12%, then '40000-x' represents the amount invested at a 4% loss
interest = principal * rate * time
we take time to be equal to 1
960 = 0.12x - 0.04(40000-x)
solving for 'x' we have x=16000
40000-16000 = 24000
Susan invested $16,000 at 12%and $24,000 at -4%