Question

please explain:

sam invested part of his $25,000 bonus in a fund that paid 8% profit and invested the rest in stock that suffered a 3% loss. Find the amount in each investment if his overall net profit was $1230.

Answer 1

Let Sam invested for profit = $ x

Thus other investment = $(25000 -x)
The profit = 8% of x= 0.08x
Loss = 3% of (25000-x) = 0.03(25000-x)

Thus 0.08x -0.03(25000-x) = 1230

We get x= 18,000