Problema Solution

An investor invested a total of 23,00 in two mutual funds. One fund earned a 5% profit while the other earned a 2% profit. If the investor's total profit was $67, how much was invested in each mutual fund?

Answer provided by our tutors

profit = $67

x =amount invested in the funds that earn 5%

(x * 5%) + (23000-x)*2% =67

0.05x + 460 -0.02x =67

0.03x=-393

x= -13100

 

x=-13100, means the investor short on the fund earning 5% ( investor borrow 13100 at interest rate of 5%), and invest a total of (23000--13100=36100) on the fund earning 2%