Question

An investor invested a total of $2,800 in two mutual funds. One fund earned 5% profit while the other earned 3% profit. If the investor's total profit was $104, how much was invested in each mutual fund? The amount invested in the mutual fund that earned 5% was $(blank). The amount invested in the mutual fund that earned 3% was $(blank).

Answer 1

The amount invested in the mutual fund that earned 5% is $ 1000

The amount invested in the mutual fund that earned 3% is $ 1800

Solution:

Given that , An investor invested a total of $2,800 in two mutual funds

Let the amount invested in 1st mutual fund be $n

Then the amount invested in the other mutual fund will be $(2800 - n)

One fund earned 5% profit while the other earned 3% profit

Then, profit earned by 1st fund ⇒ 5% of n  

And profit earned by 2nd fund ⇒ 3% of 2800 – n

Investor's total profit was $104

Now, we know that,

total profit = profit earned on 1st fund + profit earned on 2nd fund

104 = 5% of n + 3% of ((2800 - n)

$\frac{5}{100} n+\frac{3}{100}(2800-n)=104$

$\begin{array}{l}{\frac{5 n+3(2800-n)}{100}=104} \\\\ {5 n+3 \times 2800-3 n=10400} \\\\ {5 n-3 n=10400-8400} \\\\ {2 n=2000} \\\\ {n=1000}\end{array}$

So, he invested $ 1000 in 1st fund at 5 % profit

And 2800 – n = 2800 - 1000 = $ 1800 in 2nd fund at 3 % profit