Problema Solution

An invester invested a total of $2700.00 in 2 mutual funds. One fund earned a 5% profit and the onther one earned a 3% profit. If the investers total profit was $107.00, how much was invested in each mutual fund?

Answer provided by our tutors

first fund (5%) : x

second fund (3%) = y

=> x + y = 2700 => x = 2700-y (1)

(because 5% = 0.05, 3% = 0.03)

=> 0.05x + 0.03y = 107 (2)

 

from (1), (2)  => subtitute x = 2700 - y 

=> 0.05(2700-y) + 0.03y = 107

=>  135 - 0.05y + 0.03y = 107

=> 0.02y = 28

=> y = 28/0.02 = $1400

=> x = 2700 - 1400 = $1300

Conclusion:

5% profit fund = $1300 

3% profit fund = $1400