Question

A person with a capital of $ 150000 has spent all of his money in foreign currency and gold investment. At the end of the year, foreign currency earned 23% and gold generated 32%. Since the person in question earned $ 39900 as of the end of the year, find the amount of money invested in foreign currency and gold.

Answer 1

Let the amount invested in foreign currency be x and the amount invested in gold be y.

Therefore, x + y = $150,000........................(1)

23% of x + 32% of y = $39,900

ie. 0.23x + 0.32y = $39,900..............................(2)

Multiply (1) with 0.32, we get:

0.32x + 0.32y = $48,000...............................(3)

Subtract (2) form (3), we get:

0.32x + 0.32y = $48,000 -0.23x - 0.32y = - $39,900

0.09x - 0 = $8100

x = 8100 / 0.09
= $90,000

if x = $90,000

then y = 150,000 - 90,000 = $60,000.

Therefore, amount of money invested in foreign currency is $90,000 and amount of money invested in Gold is $60,000.