Question

Caitlin invested money in two mutual funds – a stock fund and a balanced fund. She invested three times as much in the stock fund as in the balanced fund. At the end of year, the stock fund earned the equivalent of 17% simple interest and the balanced fund earned 3.5%. If her total gain was $1125, determine how much she invested in each fund. Round to the nearest dollar, if necessary.

Answer 1

She invested $2064 in the balance fund and $ 6193 in the stock fund.

Step-by-step explanation:

Let balanced fund = $x and stock fund = $3x

If her total gain was $1125, then:

0.035x + 0.17(3x) = $1125

0.035x+ 0.51x = $1125

0.545x = $1125

x = $1125/0.545

= $2064.22

Therefore, she invested $2064 in the balance fund and $ 6193 in the stock fund.

x=3343

Hence

balanced fund = $3343

stock fund =$2*3343 =$6686