Answer: the amount invested that earned 4% profit is $200
the amount invested that earned 2% profit is $1500
Explanation:
Let x represent the amount invested that earned 4% profit.
Let y represent the amount invested that earned 2% profit.
An investor invested a total of $1700 in two mutual funds. One fund earned a 4% profit while the other earned a 2% profit. It means that
x + y = 1700
The amount of profit earned on the first mutual fund is
4/100 × x = 0.04 × x = 0.04x
The amount of profit earned on the second mutual fund is
2/100 × y = 0.02 × y = 0.02y
If the investor's total profit was $38, it means that
0.04x + 0.02y = 38 - - - - - - - - - -1
Substituting x = 1700 - y into equation 1, it becomes
0.04(1700 - y) + 0.02y = 38
68 - 0.04y + 0.02y = 38
- 0.04y + 0.02y = 38 - 68
- 0.02y = - 30
y = - 30/- 0.02 = $1500
x = 1700 - y = 1700 - 1500
x = $200