# Investment Problem: $12,000 Net Profit of$120

• MHB
• paulmdrdo1
In summary, A businessman invested \$5000 at 8% and \$7000 at 4%. His net profit for the year was \$120. paulmdrdo1 A businessman invested a total of \$12,000 in two ventures. 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? what does it mean when we say we lost some amount in an investment? does it mean that we didn't get back the original amount that we invested? when I solve this problem my answers are \$5000 @ 8% and \$7000 @ 4%. but i got confused with the net income that is \$120. if I profited \$400 in a \$5000 investment I should till get a total profit of $400 in the two investments. can you please explain. I would let$x$be the amount invested which made an 8% profit, and$y$be the amount invested which made a 4% loss. Since the total invested is \$12,000, we may state:

(1) $$\displaystyle x+y=12000$$

Now, adding the profit and loss (negative profit), we get the total profit:

$$\displaystyle 0.08x-0.04y=120$$

If we multiply this second equation by 25, we can get integral coefficients:

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

Now, I would suggest using elimination...if you add (1) and (2), you will eliminate $y$ and get an equation solely in $x$ which you can then solve. Then using the value for $x$ which you obtain, you can find $y$ by substituting for $x$ into either (1) or (2). I suggest using (1). Your stated answers are correct.

## How is the Net Profit Calculated?

The net profit is calculated by subtracting the total expenses or costs from the total revenue or income generated from the investment. It is important to accurately calculate the net profit in order to determine the success of the investment.

## What is Considered a Good Return on Investment (ROI)?

A good return on investment varies depending on the industry and individual goals. Generally, a ROI of 10-15% is considered good, but it ultimately depends on the risk and time frame of the investment.

## How Can I Maximize My Net Profit in an Investment?

To maximize net profit in an investment, it is important to carefully research and analyze potential investments, diversify your portfolio, and regularly monitor and adjust your investments. It is also beneficial to seek guidance from a financial advisor or expert in the field.

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