2) Find what was earned at 7% and 2%

Question

An investor invested a total of ​$3,400 in two mutual funds. One fund earned a 7​% profit while the other earned a 2​% profit. If the​ investor's total profit was ​$148​, how much was invested in each mutual​ fund?

Answer 1

Hi Scott, to solve this problem, set up a system of equations and solve. Let x represent the amount of money invested at 7% and y represent the amount of money invested at 2%.

Equation 1, amount invested:

x + y = 3400

Equation 2, return on investment:

.07 * x + .02 * y = 148

I do not like decimals, so I multiplied this equation by 100 to clear the decimals.

7 * x + 2 * y = 14800

System to solve:

x + y = 3400

7x + 2y = 14800

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Multiply equation 1 by -2:

-2x - 2y = - 6800

7x + 2y = 14800

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5x = 8000

x = 1600

$1600 was invested at 7%.

Substituting in equation 1 gives:

1600 + y = 3400

Subtract 1600 from both sides:

y = 1800

$1800 was invested at 2%.

Questions?