an investor invested a total of 2500 dollars in two mutual funds.one fund earned 5 percent profitwhile the other earned 3 percent profit. if the total profit was111 dollars how much was invested in each mutual fund. how much is 5 percent​

Accepted Solution

Total investment=$2500Let say David earned 5% profit and Harry earned 3% profit.If David invested y dollar in mutual fund then Harry would invest,Harry would invest,$(2500-y)Total profit would equal to sum of 5% of money David invested and 3% of money Harry invested,So,5% × y +3% ×(2500-y)=total profit0.05×y+0.03×(2500-y)=$1110.05y+0.03×2500-0.03y=1110.02y+75=1110.02y=111-75y=36/0.02y=$1800which is the amount David invested.The amount invested by Harry would be,=$(2500-1800)=$700