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Liono4ka [1.6K]
3 years ago
9

Caitlin invested money in two mutual funds – a stock fund and a balanced fund. She invested twice as much in the stock fund as i

n the balanced fund. At the end of year, the stock fund earned the equivalent of simple interest and the balanced fund earned . If her total gain was , determine how much she invested in each fund. Round to the nearest dollar, if necessary.
Business
1 answer:
lora16 [44]3 years ago
7 0

Answer:

$6,686

Explanation:

The computation of the amount invested in each fund is shown below:

Let  us assume the balanced fund be x

Now the stock fund is 2x

And, the total gain is $1,270.34

So, the equation that could be made is

0.04x  + 0.17(2x) = $1,270.34

0.04x + 0.34x = $1270.34

0.38x = $1270.34

x = $1,270.34 ÷ 0.38

x = $3,343

The balanced fund is  $3343

So,

The stock fund is

= $2 × $3343

= $6,686

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