Questions: An investment firm invested in two companies last year. They invested 7000 in Company A and made a profit of 13%. They invested 13,000 in Company B and made a profit of 18%. Answer the questions below. Do not do any rounding. (a) What was the investment firm's total profit? (b) What was the percent profit for their total investment? %

Solution Steps

To find the profit from each investment, multiply the investment amount by the profit percentage.

For Company A: \[ \text{Profit}_A = 7000 \times 0.13 = 910.0 \]

For Company B: \[ \text{Profit}_B = 13000 \times 0.18 = 2340.0 \]

Add the profits from both investments to find the total profit.

\[ \text{Total Profit} = 910.0 + 2340.0 = 3250.0 \]

Add the investment amounts for both companies to find the total investment.

\[ \text{Total Investment} = 7000 + 13000 = 20000 \]

Divide the total profit by the total investment and multiply by 100 to find the percent profit.

\[ \text{Percent Profit} = \left(\frac{3250.0}{20000}\right) \times 100 = 16.25\% \]

Final Answer