Problema Solution
Two investments made. 1st earned 12% and 2nd investment lost 5% for a total gain of 800. The the amounts in these two investments had been switched, the reuslt is a gain of 460. How much was actually invested at each rate
Answer provided by our tutors
let
x = the 1st investment
y = the 2nd investment
1st earned 12% and 2nd investment lost 5% for a total gain of 800
0.12x - 0.05y = 800
the the amounts in these two investments had been switched, the result is a gain of 460
0.12y - 0.05x = 460
by solving the system of equations
0.12x - 0.05y = 800
0.12y - 0.05x = 460
we find
x = $10,000
y = $8,000
click here to see the step by step solution of the system of equations
$10,000 was the 1st investment and $8,000 was the 2nd investment.