i need help with this

Question

Kemi invested money in two types of mutual funds, $2800, in low risk funds and $700 in high-risk funds. if the value of the low risk dropped by 10% and that of the high risk funds grew by 30%, by what percent did the total value of her investment change? 

Answer 1

Initially, the total investment value T(0) = $2800 + $700 = $3500

 

The new investment value T(1) = $2800 * (0.9) + $700 * (1.3) = $3430

 

where 0.9 represents a loss of 10% value (1.0 - 0.1) and 1.3 represents a gain of 30% (1.0 + 0.3).

 

Total value of the investment changed by T(1) - T(0) = $3430 - $3500 = -$70

 

Represented as a percentage of the original investment value, P = -$70 / $3500 = -2%

 

Kemi lost 2% of her investment.