Kevin invested his savings in two investment funds. The amount he invested in Fund A was $3000 less than the amount he invested in Fund B. Fund A returned a 8% profit and Fund B returned a 5% profit. How much did he invest in Fund A, if the total profit from the two funds together was $1320?
if $x in A, then x+3000 was in B.
.08x + .05(x+3000) = 1320
Let's assume that Kevin invested x dollars in Fund B.
According to the given information, the amount invested in Fund A was $3000 less than the amount invested in Fund B. So, the amount invested in Fund A can be represented as (x - 3000) dollars.
The profit from an investment is given by the equation: profit = (amount invested) * (rate of return).
Using this equation, the profit from Fund A can be calculated as: (x - 3000) * 0.08.
Similarly, the profit from Fund B can be calculated as: x * 0.05.
According to the problem, the total profit from the two funds together was $1320. So, we can set up the equation:
(x - 3000) * 0.08 + x * 0.05 = 1320.
Now, let's solve this equation to find the value of x:
0.08x - 240 + 0.05x = 1320
0.13x - 240 = 1320
0.13x = 1320 + 240
0.13x = 1560
x = 1560 / 0.13
x ≈ 12000
Therefore, Kevin invested approximately $12000 in Fund B.
To find the amount he invested in Fund A, we subtract $3000 from the amount invested in Fund B:
Amount invested in Fund A = $12000 - $3000 = $9000.
So, Kevin invested $9000 in Fund A.
To find out how much Kevin invested in Fund A, we can set up a system of equations based on the given information.
Let's assume Kevin invested x dollars in Fund B.
According to the given information, the amount he invested in Fund A was $3000 less than the amount he invested in Fund B. So, the amount invested in Fund A can be represented as (x - $3000).
The profit from Fund A is 8% of the amount invested in Fund A, which can be expressed as 0.08 * (x - $3000).
Similarly, the profit from Fund B is 5% of the amount invested in Fund B, which can be expressed as 0.05 * x.
According to the problem, the total profit from the two funds together was $1320, so we can set up the equation:
0.08 * (x - $3000) + 0.05 * x = $1320
Now, we can solve this equation to find the value of x, which represents the amount invested in Fund B.