Question

Jenelle invested $14600 in two mutual funds Fund A earned 5% profit during the first year, while Fund B suffered a 2.5% loss. If she received a total of $430 profit, how much had she invested in each mutual fund?

Answer 1

Therefore she invested $10600 and $4000 in Fund A and Fund B respectively.

Explanation:

Given that,

Jenelle invested $14600 in two mutual funds.

Fund A 5% profit during the first year.

Fund B suffered a 2.5% loss.

Let she invested $x in Fund A.

Then the amount of remaining money is =$(14600-x)

So, she invested $(14600-x) in fund B.

Since Fund A 5% profit during the first year.

The amount of profit from fund A is

= Invest amount in fund A × 5%

=
`x* 5\%`

`=x* (5)/(100)`

`=(5x)/(100)`

Since Fund B suffered a 2.5% loss.

The amount of loss in fund B is

=Invest amount in fund B ×2.5%

=(14600-x)×2.5%

`=(14600-x)* (2.5)/(100)`

Total profit

= Amount of profit - Amount of loss

`=(5x)/(100)-(14600-x)* (2.5)/(100)`

`=(5x-(14600-x)2.5)/(100)`

`=(5x-36500+2.5x)/(100)`

`=(7.5x-36500)/(100)`

According to the problem,

`(7.5x-36500)/(100)=430`

`\Rightarrow 7.5x -36,500=430* 100`

`\Rightarrow 7.5x =43000+36,500`

`\Rightarrow 7.5x =79,500`

`\Rightarrow x =(79,500)/(7.5)`

⇒x=10,600

She invested in fund B = $(14600-10600)=$4000

Therefore she invested $10600 and $4000 in Fund A and Fund B respectively.