how to solve word problem

Question

Jim invested in ford motors.  He gained 10 % of his investment, giving him $50.  What was his initial investment?

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Answer 1

The wording is a little ambiguous.

Is $50 what he earned from his investment ?

If so, 10 % of what number is $50 ?

10%*n=$50

0.1*n=$50

n=50/(0.1)

n=500/1

n=$500 invested at 10 %

Answer 2

Vicki,

 

Let I₀ be the initial investment then 50=I₀(1+.1) so solving for I₀ gives I₀=50/(1.1)=45.45. So he must have started with $45.45.

 

Jim