An investor invested a total of $2200 in two mutual funds. One earned 5% profit while the other earned a 3% profit. If the investor's total profit was $86, how much was invested in each mutual fund?
To solve this problem, we can set up a system of equations based on the given information.
Let's assume the amount invested in the mutual fund that earned 5% profit is x dollars.
Since the total amount invested is $2200, the amount invested in the other mutual fund (earning 3% profit) would be (2200 - x) dollars.
According to the problem, the first mutual fund earned a 5% profit, which can be calculated as (5/100) * x = 0.05x dollars.
Similarly, the second mutual fund earned a 3% profit, which can be calculated as (3/100) * (2200 - x) = 0.03(2200 - x) dollars.
The total profit is given as $86, so we can write the equation:
0.05x + 0.03(2200 - x) = 86
Now, we can solve this equation to find the value of x, which represents the amount invested in the mutual fund earning 5% profit.
0.05x + 0.03(2200 - x) = 86
0.05x + 66 - 0.03x = 86
0.02x = 20
x = 20 / 0.02
x = 1000
Therefore, the investor invested $1000 in the mutual fund earning 5% profit, and the remaining $2200 - $1000 = $1200 was invested in the mutual fund earning 3% profit.