ALGEBRA ONE QUESTION NUMBER 5

Question

An investor invested a total of $2,600 in two mutual funds. One fund earned a 5% profit and the other earned  a 3% profit. If the investor's total profit was $102 how much was invested in each mutual fund?

Answer 1

Let M1 = amount at 5%, and M3 = amount at 3%

then M1 + M2 = $2600

 

and 0.05M1 + 0.03M2 = $102

 

solving equation 1 for M2, we get 2600 - M1

 

substituting that value into equation 2, we get

0.05M + 0.03(2600 - M1 = $102

which becomes 0.05M1 + $78 - 0.03M1 = $102

combining, 0.02M1 = $24

solving, M1 = $1200

then, M2 = $2600 - 1200 = $1400

 

Proof: $1200 x 0.05 + 1400 x 0.03 = $60 +$42 = $102