How much was invested in each mutual fund?

Question

An investor invested a total of $2,000 in two mutual funds. One find earned a 5% profit while the other earned a 2% profit. If the investor's royal profit was $67, how much was invested in each mutual fund?

Answer 1

let x = amount in fund A

then 2000 - x = amount in fund B

converting the percentages to decimals, we get 5% = 0.05, and 2% = 0.02

 

amount in A x 0.05 + amount in B x 0.02 = $67

0.05x + ($2000 - x)•0.02 = $67

0.05x + $40 - 0.02x = $67

solving, x = $900

so the amount in fund B is $2000 - 900 = $1100

 

Proof: $900•0.05 + $1100•.02 = $45 + $22 = $67