Interest problem

Question

Jane invested $20,000 in two accounts. She took a 4% loss on one account and made a 12% profit on the other. She ended up breaking even. I keep getting a negative number. Thanks for your help!

Answer 1

It took me a few tries, but gere ya go...

a + b = 20,000

1.12a + 0.96b = 20,000

a = 20,000 - b

1.12(20,000 - b) + 0.96b = 20,000

22,400 - 1.12b + 0.96b = 20,000

0.16b = 2400

b = 15,000

a = 20,000 - 15,000 = 5000