Question

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

Answer 1

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