Answer:
The amount invested in funds that earned 12% profit is 31000
The amount invested in stock that suffered 5% loss is 6,000.
Step-by-step explanation:
Let x be the amount invested in funds that earned 12%.
Then the amount invested in stock that suffered 5% loss is 37000 - x.
The profit from investment in funds is = 12% of x
= 0.12·x
The loss from investment in stock is = 5% of (37000 - x)
= 0.05 × (37000 - x)
The net profit is 0.12·x - 0.05 × (37000 - x)
As the net profit given in the problem is $3420, we have :
0.12·x - 0.05 × (37000 - x) = 3420
Solving for x, we have :
12·x - 5 × (37000 - x) = 342000 (multiply both sides by 100)
12·x - 185000 + 5·x = 342000
17·x = 527000
⇒ x = 31000
Hence, The amount invested in funds that earned 12% profit is 31000 and the amount invested in stock that suffered 5% loss is 37000 - x = 37000 - 31000 = 6,000.
