Problema Solution

An investor invested a total of $2700 in two mutual funds. One fund earned 5%, the other earned 3%. Total profit was 95%, how much was invested in each fund

Answer provided by our tutors

let


x = the money invested in the 5% fund, x>=0

y = the money invested in the 3% fund, y>=0


an investor invested a total of $2700


x + y = 2700


total profit was 95%


0.05x + 0.3y = 0.95*2700


by solving the system of equations


x + y = 2700

0.05x + 0.3y = 0.95*2700


we get


x = -7020


y = 9720


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we got negative number for x thus it is impossible for the total profit to be 95%


also notice that 0.05x + 0.3y <= 0.05*2700 = 135 < 0.95*2700 = 2565 again it is impossible for the total profit to be 95%