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Question 218075: I've been having problems with this particular problem:
A person won a state lottery prize of $20,000, from which 25% was deducted for taxes. The remainder was invested, partly for a 40% gain and a 10% loss. How much was each investment if there as a $2000 net investment gain?
I thought that you set up the problem as an equation x being the unknown amount but I got stumped on whether or not to use the pre or post taxed amount.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A person won a state lottery prize of $20,000, from which 25% was deducted for taxes. The remainder was invested, partly for a 40% gain and a 10% loss. How much was each investment if there as a $2000 net investment gain?
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From the lottery he received 0.75*20000 = 15000
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Equation:
interest + interest = interest
0.40x - 0.10(15000-x) = 2000
Multiply thru by 100 to get:
40x - 150000 + 10x = 200000
50x = 350000
x = $7000 (amt. invested at 40%)
15000-7000 = $8000 (amt. invested at 10%)
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Cheers,
Stan H.
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