Sandra invested a certain amount of money.
In the first year the investment reached 110% of its initial value.
She spent 20% of the profit to buy a tennis racket and 1/8 of what was left she spent on a tennis outfit.
140 euros remain from the profit.
How much had Sandra invested?
The answer is 2000 euros, but why?
What is the way to solve the problem?
Let the total amount invested =M
At the end of the year the investment was worth =1.1M
1.1M - M =0.10M - profit made
She spent 20% on tennis racket, which means she still had 80% left.
0.8 *0.10M =0.08M left
She spent 1/8 on tennis outfit, which means she still had 7/8 left.
7/8 * 0.08M =0.07M left
0.07M =140, solve for M
M =140 /0.07
M =2,000 Euros - initial amount invested.