Susan Marciano invested part of her $12,000 bonus in a fund that paid an 11% profit and invested the rest in stock that suffered a 5% loss. Find the amount of each investment if her overall net profit was $360

Answer :

Answer: she invested $6000 in the fund paying 11% interest and $6000 in the stock that suffered a 5% loss.

Step-by-step explanation:

Let x represent the amount which he invested in the fund paying 11% interest.

Let y represent the amount which he invested in the stock that suffered a 5% loss.

Susan Marciano invested part of her $12,000 bonus in a fund that paid an 11% profit and invested the rest in stock that suffered a 5% loss. This means that

x + y = 12000

The formula for determining simple interest is expressed as

I = PRT/100

Considering the fund paying 11% interest,

P = $x

T = 1 year

R = 11℅

I = (x × 11 × 1)/100 = 0.11x

Considering the account that suffered a 5% loss,

P = $y

T = 1 year

R = 5℅

I = (y × 6 × 1)/100 = 0.05y

if her overall net profit was $360, it means that

0.11x - 0.05y = 360 - - - - - - - - - -1

Substituting x = 12000 - y into equation 1, it becomes

0.11(12000 - y) - 0.05y = 360

1320 - 0.11y - 0.05y = 360

- 0.11y - 0.05y = 360 - 1320

- 0.16y = - 960

y = - 960/ - 0.16

y = 6000

x = 12000 - 6000

x = 6000

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