Question

an investor invested a total of $1,700 in two mutual funds.one fund earned a 4%bprofit while the other earned a 2% profit. if the investors total profit was$56,how much was invested in each mutalnfund?

Answer 1

The total amount invested is $1700.

The total profit is $56.

Lets call A the amount invested in fund A with 4% profit and B the amount invested in fund B with 2% profit.

The equation for the total amount is:

$A+B=1700$

The equation for the profit can be written as:

$\begin{gathered} A\cdot0.04+B\cdot0.02=56 \\ 0.04A+0.02B=56 \end{gathered}$

We can start by clearing B in function of A from the first equation:

$B=1700-A$

We replace the value of B in the second equation and solve for A:

$\begin{gathered} 0.04A+0.02(1700-A)=56 \\ 0.04A+0.02\cdot1700-0.02A=56 \\ (0.04-0.02)A+34=56 \\ 0.02A=56-34 \\ A=\frac{22}{0.02} \\ A=1100 \end{gathered}$

Now we can solve for B:

$B=1700-A=1700-1100=600$

Answer: he invest $1100 in the 4% profit fund and $600 in the 2% profit fund.