Problema Solution

Susan Marciano invested part of her $15000 bonus in a fund that paid 12% profit and invested the rest in stock that suffered a 5% loss. Find the amount of each investment if her overall net profit was $1120.

Answer provided by our tutors

let


x = the part invested at the fund that paid 12% profit


15,000 - x = the rest of the money that is invested in stock that suffered 5% loss


the profit is equal to: 0.12x


the loss if equal to: 0.05(15000 - x)


her overall net profit was $1120 means:


0.12x - 0.05(15000 - x) = 1120


by solving we find


x = $11,000


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$11,000 were invested in a fund.


15,000 - 11,000 = $4,000


$4,000 were invested in stock.