An investor invested a total of $3,500 in two mutual funds.

Question

An investor invested a total of $3,500 in two mutual funds. One fund earned a 9​% profit while the other earned a 4​% profit. If the​ investor's total profit was $225​, how much was invested in each mutual​ fund?

Answer 1

Answer 2

Let’s call the amount invested in the first mutual fund x. Since the investor invested a total of $3,500, the amount invested in the second mutual fund is 3500 - x.

Now let’s put together an equation. A 4% return = .04 and a 9% return equals .09.

.09x + .04 (3500 - x) = 225 (total profit)

.09x + 140 - .04x = 225

.05x +140 = 225

.05x = 85

x = 85/.05 = 1700

Since we know $1,700 was invested in one mutual fund, then 3,500 - x = 3,500 - 1,700 = $1,800 was invested in the other mutual fund.

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Answer 3

Let x = amount invested in the first fund and y = amount invested in the second fund.

x + y = 3500

0.09x + 0.04y = 225

Since x + y = 3500, y = 3500 - x.

So, 0.09x + 0.04(3500 - x) = 225

0.09x + 140 - 0.04x = 225

0.05x = 85

x = $1700 and y = 3500 - x = $1800