Question

Janelle invested $13000 into two mutual funds. Fund A earned 6% profit during the first year, well fund B suffered a 3.5% loss. If she received a total of 324$ profit, how much had she invested in each mutual fund?

Answer 1

amount invested in mutual fund B; $4,800

amount invested in mutual fund A; $8,200

Explanation:

Let the amount invested in mutual fund B be x. Then the amount invested in fund A would be;

(13000-x)

The loss emanating from fund B would be;

3.5% of x

=(3.5/100)*x

=0.035x

The profit resulting from investment in fund A would be;

6% of (13000-x)

= (6/100)*(13000-x)

=0.06(13000-x)

=780-0.06x

The total profit earned from funds A and B in terms of x will be;

780 - 0.06x + (-0.035x)

=780 - 0.095x

The total profit earned was 324, thus;

780 - 0.095x = 324

solving for x;

780 - 324 = 0.095x

456 = 0.095x

x = 4800

Then the amount invested in fund A would be;

13000 - 4800 = 8200