Problema Solution

An investor invested $3400 in two mutual funds. One earned an 8% profit, while the other earned a 6% profit. If the investors total profit was $232, how much was invested in each mutual fund?

Answer provided by our tutors

interest = principal * rate * time

we take time to be equal to 1


let 'x' represent the amount invested at 8%, then '3400-x' represents the amount invested at 6%


232 = 0.08x + 0.06(3400-x)

solving for 'x' we have x=1400


3400-1400 = 2000


$1,400 was invested at 8%, $2,000 was invested at 6%