Problema Solution
Amy invested her savings in two investment funds. The $8000 that she invested in Fund A returned a 5% profit. The amount that she invested in Fund B returned a 1% profit. How much did she invest in Fund B, if both funds together returned a 2% profit?
Answer provided by our tutors
Fund A = 8000 x 1.05 = 8400
Fund B = ________ x 1.01 = ________
Fund A + B = (______ +8400)/(_______+8000) = 1.02
First off 5% divided by 1% is 5 which means the 5 percent gain over the 1 percent gain fund, fund A is 5 times more profitable than Fund B. That being said, Fund B had 5 times the investment than Fund A which makes it 40,000, Fund B's return would be 40,400 (40,000 x 1.01)
The equation would be (40,400 + 8400) / (40,000 + 8000) = 1.02