How to find price of item sold?

Mathematics
Tutor: None Selected Time limit: 1 Day

Jim purchased 2 pieces of property that had been foreclosed on by a local bank for a total of $330,000. When he sold these properties, on the first piece Jim earned a profit of 12% but on the second piece he lost 8%. His total profit was $18,000. How much did Jim pay for each property?

Jun 26th, 2015

Thank you for the opportunity to help you with your question!

Assume that Jim paid $x for first property and $y for second property

so, x + y = 333000 ............equation 1

Profit on first property = 12% of x = 0.12x

Loss on second property = 8% of y = - 0.08y  ................... negative sign represents a loss

Total profit --> 0.12x - 0.08y = 18000.................. equation 2

Solve equation 1 and 2

x = $222,000 and y = $108,000

so,

Jim paid $222,000 for first property and $108,000 for second property


Please let me know if you need any clarification. I'm always happy to answer your questions.
Jun 26th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Jun 26th, 2015
...
Jun 26th, 2015
Dec 5th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer