equations and inequalities

Question

Problem Page

Lashonda invested her savings in two investment funds. The amount she invested in Fund A was
$2000
less than the amount she invested in Fund B. Fund A returned a
5%
profit and Fund B returned a
3%
profit. How much did she invest in Fund A, if the total profit from the two funds together was
$1100
?

Answer 1

We have two unknowns here.

 

A = initial amount invested in Fund A

B = initial amount invested in Fund B

 

The amount she invested in Fund A was $2000 less than the amount she invested in Fund B.

A + 2000 = B

 

Fund A returns 5% and Fund B returns 3%

0.05 A + 0.03 B = 1100

 

We can use the first formula for B and substitute it in the 2nd formula.

0.05 A + 0.03 (A+2000) = 1100

 

Distributing

0.05A + 0.03A + 60 = 1100

 

Combining terms

0.08A = 1040

 

Dividing both sides by 0.08

A = 13000

 

So $13,000 was invested in Fund A.