Invester invested 2,200 into two mutual funds. One earns 4% the other 2% with a total profit of $76 How much was invested in each fund at for 4 and 2%
We can set up two equations to solve for our two unknowns.
One equation based on the amounts invested (x + y = 2200).
The other equation based on the interest yield for each investment (.04x + .02y = 76).
Now we can substitute an expression for one variable in terms of the other variable from the first equation and plug that expression into the second equation like this: .04x + .02(2200 - x) = 76.
Now we can solve for x (our 1st variable) as follows:
1. 4x + 2(2200 - x) = 7600 (multiplied each term on both sides by 100 to get rid of the decimals).
2. 4x + 4400 - 2x = 7600 (did the multiplication on the left side).
3. 2x + 4400 = 7600 (combined our x terms on the left side).
4. 2x = 7600 - 4400 (subtracted 4400 from both sides to isolate the variable on the left side).
5. 2x = 3200 (did the subtraction on the left side).
6. x = 1600 (divided both sides by 2 to get our value for x - amount invested at 4 percent).
Now we can subtract our value for x from the total investment of 2200 dollars to get our value for y (amount invested at 2 percent), which gives 600 (2200 - 1600).