On two investments totaling $12,000, Michelle lost 5% on one and earned 7% on the other. If her net annual receipts were $264, how much was each investment?
Let the amount of investment that lost 5% = D
Then, the amount of 7% investment =12000 - D
- 0.05*D + 0.07*[12000 - D] =264, solve for D
D = $4,800 - Total investment on which she lost 5%.
$12,000 - $4,800 = $7,200 - Total investment on which she earned 7%.
