Question 33156: Norma invested the start-up capital for her Internet business in two hedge funds. After one year one of the funds returned 5% and the other returned 6% for a total return of $5880. If the amount on which she made 6% was $10,000 larger than the amount on which she made 5%, then what was the original amount of her start-up capital?
Answer by mukhopadhyay(490)   (Show Source):
You can put this solution on YOUR website! Investment at 5% = x dollars;
Investment at 6% = 10000+x;
Earnings in 1 year from 5% investment = .05x;
Earnings in 1 year from 6% investment = .06(10000+x);
Total earnings in 1 year = $5,880
=> .05x + .06(10000+x) = 5880
=> .11x + 600 = 5880
=> x = 5280/.11 = 48000;
Answer: The original amount of her start-up capital is $48,000+$58,000=$106,000
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