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investment word problems


Active member
Jul 30, 2013
1. A trust fund has invested \$8000 at 6% annual interest.
How much additional money should be invested at
8.5% to obtain a return of 8% on the total amount

my solution,

$n=$amount invested @ 8.5%





\$32,000 is the addtional money should be invested at 8.5%. is this correct?

2. A businessman invested a total of \$12,000 in two ven-tures. In one he made a profit of 8% and in the other he
lost 4%. If his net profit for the year was $120, how
much did he invest in each venture?

in this problem i don't know how will i represent the amount invested in the other venture. please help. thanks!


Staff member
Feb 24, 2012
1.) Correct.

2.) Let $x$ represent the first investment amount and $y$ represent the other. So we know:

\(\displaystyle x+y=12000\)

And we also know:

\(\displaystyle 0.08x-0.04y=120\)

which I would rewrite as:

\(\displaystyle 2x-y=3000\)

Now, add the two equations to eliminate $y$, then solve for $x$, then use this value of $x$ in either of the two equations to determine $y$.