amount invested to fund B and A.

Question

a total of $17000 is invested into two mutual funds for 1 year the return on fund A is 3% ,return on fund B is 2% and total return is 407.50 how mu is invested into each fund.

Answer 1

Crystal,

 

The way to approach this is to assign x to the dollars in fund A and y to B. Then we express the total return in terms of x and y:

.03x+.02y=407.5

 

And express total amount of money in terms of x and y:

x+y=17000

 

Then we want to eliminate one variable to find the other, so I'm going to multiply the second equation by -.02:

-.02x-.02y=-340

 

When we add this new equation to the first we get:

.01x=67.5

 

which makes x=6750, leaving 10250 to invest in fund B.

 

Checking our work:

6750 (.03)+10250(.02)=202.5+205=407.5

 

Hope that helps!