Description
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?
Explanation & Answer
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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
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