Milan invested his savings in two investment funds. the $4000 that he invested in fund a returned a 3% profit. the amount that he invested in fund b returned a 10% profit. how much did he invest in fund b, if both funds together returned a 8% profit?

Given:

Percent Amount $

Fund A 3% $4000

Fund B 1% x

Total Funds 8% $4000 + x

Find:

Fund B Investment

Solution:

$4000 *.03 +.10 * x =.08% ($4000 + x)

We already know 3 rates and one amount invested

$4000 *.03 +.10 * x =.08% ($4000 + x)

Multiply them out:

120 + (0.10 * x) = 320 + 0.08x

Now, we combine like terms.

.10x - 0.08x = 320 - 120

.02x = 200

Isolate x

x = 200 / 0.02

Divide

x = $10,000

Checking:

($4000 *.03) + (.10 * 10,000) =.08% ($4000 + 10,000)

120 + 1000 = 320 + 800

1120 = 1120

Therefore, fund B has an investment of $10,000.