Problema Solution

An investor invested a total of $2,800 in two mutual funds. One fund earned a 4% profit while the other earned a 2% profit. if the investor's total profit was $96, how much was invested in each mutual fund?

Answer provided by our tutors

let 'x' represent the amount invested at 4%, then '2800-x' represents the amount invested at 2%


simple interest = principal * rate * time

we take time to be equal to 1


96 = 0.04x + 0.02(2800-x)

solving for 'x' we have x=2000


2800-x = 800


$2,000 was invested at 4% and $800 was invested at 2%