Nicholas G. answered • 06/02/15

Tutor

New to Wyzant
Teacher in DPS looking to work with students during summer

This is a system of equations: And we will use A for fund A, and B for fund B

Knowing that the amount of Fund A is $6000 less that the amount in Fund B, we can represent it using the following equation:

A= B-6000

The other thing we know, is that the profits equal $1980. Profit= Initial amount multiplied by percentage profit... SO:

Profit of A+Profit of B= $1980

Profit of A= .02*A

Profit of B= .08*B

Using substitution we get our second equation:

(.02*A)+(.08*B)= 1980

So our two equations are:

A=B-6000

.02A+.08B=1980

Substitute for A and we get:

.02(B-6000)+.08B=1980

Distribute to get: .02B-120+.08B=1980

Combine like terms and move the 120 to the other side:

.1B=2100

Divide both sides by .1, and you get

**B=$21000**