A person invested in two items—one gave a 10% profit and the other a 5% loss. If the total investment was Rs. 5,000 and the net result was a Rs. 100 profit, what was the investment in the profit-making item?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Rs. 2,333.33
Let the investment of x at 10% profit and (5000 – x) at 5% loss
Profit from first investment = 0.10x
Loss from second investment = 0.05(5000 – x)
Net profit = 0.10x – 0.05(5000 – x) = 100
⇒ 0.10x – 250 + 0.05x = 100
⇒ 0.15x = 350
⇒ x = 350/0.15 ≈ 2333.33