Problema Solution
An investor invested a total of $3500 in two mutual funds. One fund earned a 7% profit while the other fund earned a 4% profit. If the investor's total profit was $197, how much was invested in each mutual fund? The amount invested in the mutual fund that earned 7% was $? The amount invested in the mutual fund that earned 4% was $?
Answer provided by our tutors
Let the amount invested in 1st mutual fund be x
so, x*(7/100) + (3500 - x)*(4/100) = 197
=> 3x + 14000 = 19700
=> 3x = 19700 - 14000
=> x = 5700/3 = 1900
Hence In mutual fund which earned 7% , the amount invested = $1900
and In mutual fund which earned 4% , the amount invested = $1600