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

Answer:

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

Step-by-step 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%

=$x\times 5\%$

$=x\times \frac{5}{100}$

$=\frac{5x}{100}$

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%

$=(14600-x)\times \frac{2.5}{100}$

Total profit

= Amount of profit - Amount of loss

$=\frac{5x}{100}-(14600-x)\times \frac{2.5}{100}$

$=\frac{5x-(14600-x)2.5}{100}$

$=\frac{5x-36500+2.5x}{100}$

$=\frac{7.5x-36500}{100}$

According to the problem,

$\frac{7.5x-36500}{100}=430$

$\Rightarrow 7.5x -36,500=430\times 100$

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

$\Rightarrow 7.5x =79,500$

$\Rightarrow x =\frac{79,500}{7.5}$

⇒x=10,600

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

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