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). (show your work)

Answer 1

The amount invested in the mutual fund that earned 5% was $1,000

The amount invested in the mutual fund that earned 3% was $1,800

Explanation:

Let

x ----> the amount invested in the mutual fund that earned 5%

y ----> the amount invested in the mutual fund that earned 3%

we know that

`x+y=2,800` ---->
`y=2,800-x` ----> equation A

`5\%=5/100=0.05`

`3\%=3/100=0.03`

`0.05x+0.03y=104` ----> equation B

Solve the system by substitution

substitute equation A in equation B

`0.05x+0.03(2,800-x)=104`

Solve for x

`0.05x+84-0.03x=104`

`0.05x-0.03x=104-84`

`0.02x=20`

`x=\$1,000`

Find the value of y

`y=2,800-x`

`y=2,800-1,000=\$1,800`

therefore

The amount invested in the mutual fund that earned 5% was $1,000 and the amount invested in the mutual fund that earned 3% was $1,800