A person invested his retirement savings with two separate c

A person invested his retirement savings with two separate companies. A and B. In 2012, the investments with company A earned a 15% return and the investments with company B earned a 20% return. At the beginning of 2012, the amount of money the person had invested with company B was $5,000 less than 2 times the amount he had invested in company A. If x represents the amount of money the person had invested at company A at the beginning of 2012, which expression represents the total return on his retirement savings in 2012? A. 0.55x - 1,000 B. 0.5x - 750 C. 0.55x - 2,000 D. 0.5x - 1, 500

Solution

SOLUTION

Amount of money invested in company A = x

Amount of money invested in company B = 2x - 5000

Return from company A = 0.15*x           ....................1)

Return from company B = 0.2*( 2x - 5000) = 0.4*x - 1000             .......................2)

Adding 1) and 2) we get,

Total return = 0.15*x + 0.4*x - 1000 = 0.55x - 1000

Option A.