Question

I invested a total of $2300 in mutual funds. One fund earned 9% profit while the other earned 4% profit. If the investors total profit was $172, how much was invested in each fund

Answer 1

Answer:

$1600 invested in 9% fund

$700 invested in 4% fund

Step-by-step explanation:

Let

amount invested in 9% account be "x"

so

amount invested in 4% account would be "2300 - x"

The profit from the account would be the percentage (in decimal) multiplied with the amount invested in that account. So,

Profit in 9% account:

9% = 9/100 = 0.09

0.09 * x

0.09x

Profit in 4% account:

4% = 4/100 = 0.04

0.04(2300-x)

92 - 0.04x

Total profit = 0.09x + 92 - 0.04x

This is equal to 172. We equate this and find x:

$0.09x + 92 - 0.04x=172\\0.05x=172-92\\0.05x=80\\x=1600$

Now,

2300 - x = 2300 - 1600 = 700

Hence,

$1600 invested in 9% fund

$700 invested in 4% fund