Question

An investor invested a total of $2,700 in two mutual funds. One fund earned a 5% profit while the other earned a 2% profit. If the investor's total profit was $84 how much was invested in each mutual fund?

Answer 1

Let the two investments be a and b. a+b=2700. 5%=1/20 and 2%=1/50. a/20+b/50=84, or 5a+2b=8400. But b=2700-a, so 5a+2(2700-a)=8400, 5a+5400-2a=8400, 3a=3000, so a=$1000 and b=$1700.