Susan invested part of her $31,000 bonus in a fund that paid an 11% profit and invested the rest in stock that suffered a 4% loss.find the amount of each investment if her overall net profit was 1,760

Question

Susan Marciano invested part of her 31,000 bonus in a fund that paid 11% profit and invested the rest in stock that suffered a 4% loss.find the amount of each investment if her overall net profit was 1,760.

Answer 1

Let x=amount invested in the 11% fund then the other amount invested is 31000-x.

Although not stated, I assume the overall profit is for year’s investment.

At the end of one year, the 11% fund would gain 0.11x, while the -4% fund would lose 0.04(31000-x).

If we add these two amounts together we get 0.11x-0.04(31000-x)=0.11x-1240+0.04x, remembering that 0.04(31000-x) is a loss, which is a negative gain. The net profit is 0.15x-1240=1760, 0.15x=1760+1240=3000.

So x=3000/0.15=20000. So Susan invested 20000 in the 11% fund and 11000 in the -4% loss-making fund.