SOLUTION: Isabel invested her savings in two investment funds. The $6000 that she invested in Fund A returned a 4% profit. The amount that she invested in Fund B returned a 1% profit.

Algebra ->  Customizable Word Problem Solvers  -> Mixtures -> SOLUTION: Isabel invested her savings in two investment funds. The $6000 that she invested in Fund A returned a 4% profit. The amount that she invested in Fund B returned a 1% profit.       Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1162955: Isabel invested her savings in two investment funds. The
$6000 that she invested in Fund A returned a
4% profit. The amount that she invested in Fund B returned a
1% profit. How much did she invest in Fund B, if both funds together returned a 2% profit?
Found 2 solutions by VFBundy, greenestamps:
Answer by VFBundy(438) About Me  (Show Source):
You can put this solution on YOUR website!
FUND A:
Principal = 6000
Rate of profit = 0.04
Profit = 0.04 * 6000 = 240

FUND B:
Principal = p
Rate of profit = 0.01
Profit = 0.01p

%28240+%2B+0.01p%29%2F%286000+%2B+p%29 = 0.02

0.02(6000 + p) = 240 + 0.01p

120 + 0.02p = 240 + 0.01p

0.01p = 120

p = 12000

FUND B:
Principal = p = $12,000

Answer by greenestamps(13200) About Me  (Show Source):
You can put this solution on YOUR website!


Here is a quick and easy way to solve "mixture" problems like this without algebra, with just a bit of logical reasoning and some simple mental arithmetic.

The 2% overall return on the investments is twice as close to 1% as it is to 4%.

That means twice as much was invested in the fund that returned 1% as was invested in the fund that returned 4%.

Since $6000 was invested in the fund that returned 4%, the amount invested in the fund that returned 1% was 2 times $6000, or $12,000.