Question

An investor invested $1,500 in two mutual funds. One fund earned a 6% profit while the other earned a 3% profit. If the investor's total profit was$54, how much was invested in the mutual fund?

Answer 1

To determine the amount invested in each mutual fund, we solve the system of equations derived from the total investment and the total profit. By doing so, we find that the investor placed $900 in the fund with a 6% profit and $600 in the fund with a 3% profit.

Step-by-step explanation:

The question concerns an investment scenario in which the investor has allocated $1,500 across two mutual funds with different profit percentages. Using algebra, we can set up two equations based on the total investment amount and the total profit earned of $54.

Let's denote the amount invested in the 6% fund as x and in the 3% fund as y. The first equation representing the total investment would be x + y = 1,500. The second equation, representing the total profit from both funds, would be 0.06x + 0.03y = 54.

By solving these two equations simultaneously, we can determine the investment amounts for each fund. The investor allocated $900 in the mutual fund earning a 6% profit and $600 in the mutual fund earning a 3% profit.