Lydia inherited a sum of money.

Question

She split it into five equal parts. She invested three parts of the money in a high-interest bank account which added 10% to the value. She placed the rest of her inheritence plus $500 in the stock market but lost 20% on that money. If the two accounts end up with exactly the same amount of money in them, how much did she inherit?

Answer 1

Let m = sum of money

 

[(3m)/5]*1.10 = ([(2m)/5] + 500)*0.80

 

Solve for m.

 

(3.3m)/5 = (1.6m)/5 + 400

 

3.3m = 1.6m + 2000

 

1.7m = 2000

 

m = 1176.47