Question

Sam invested $10,000. Part of it was invested into a fund that paid 5% annual interest, and the rest was invested into opening a business, which made a loss of 2%. At the end of the year, he made $300 profit. How much did he

invest into the business?

Answer 1

Let's call the amount invested into the fund X. Then, the amount invested into the business would be $10,000 - X.

The interest from the fund would be X * 5% = 0.05X.

The loss from the business would be (10,000 - X) * 2% = 0.02 * (10,000 - X) = 200 - 0.02X.

So, the total profit at the end of the year would be:

0.05X - 0.02X + 300 = 300 + 0.03X

We know that the total profit is $300, so:

300 = 300 + 0.03X

Solving for X, we get:

0 = 0.03X

So, X = 0, and Sam did not invest any money into the fund.

Therefore, he invested the entire $10,000 into the business, and the business made a loss of $200, or 2% of the investment