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.