An investor invested a total of $1900 in two mutual funds. One fund earned a 6% profit while the other earned a 2% profit. If the investor's total profit was $94, how much was invested in each mutual fund?
amount at 6% --- x
amount at 2% ---1900-x
solve for x
.06x + .02(1900-x) = 94
To solve this problem, let's assume the amount invested in the fund that earned a 6% profit is x dollars. Then, the amount invested in the fund that earned a 2% profit would be (1900 - x) dollars, since the total investment is $1900.
Now, we can calculate the amount of profit from each fund.
The profit from the fund with a 6% profit would be (x * 0.06) dollars.
The profit from the fund with a 2% profit would be ((1900 - x) * 0.02) dollars.
Since the total profit is $94, we can set up the equation:
(x * 0.06) + ((1900 - x) * 0.02) = 94
To simplify, multiply the terms and distribute:
0.06x + (0.02 * 1900) - (0.02x) = 94
0.06x + 38 - 0.02x = 94
Combine like terms:
0.04x + 38 = 94
Subtract 38 from both sides to isolate the variable:
0.04x = 94 - 38
0.04x = 56
Divide both sides by 0.04 to solve for x:
x = 56 / 0.04
x = 1400
Therefore, the investor invested $1400 in the mutual fund that earned a 6% profit. The remaining amount of $500 (1900 - 1400) was invested in the mutual fund that earned a 2% profit.