An investor invested a total of $1,500 in two mutual funds. One fund earned a 9% profit while the other earned a total of 5% profit. If the investor earned a total profit of $127, how much was invested at 9% and how much was invested at 5%? I would really appreciate it if someone could explain how to solve this problem rather than doing the work for me. I would love to work it out myself so that I can retain the information. Thank you!

Question

anonymous · Answer

On a problem like this, the first thing you want to do is introduce variables to represent the things you don't know.
Let x = the amount invested in the fund that earned a 9% profit
Let y = the amount invested in the fund that earned a 5% profit
Now there are 2 equations we can write involving x and y. Can you think of one of them? One of them is a bit simpler than the other.

anonymous · Answer

Ok I am thinking the first one would be something like .09x+.05y=$127?

anonymous · Answer

cool! that's actually the more difficult one! the other one is a bit simpler.

anonymous · Answer

hint: x + y = .....

anonymous · Answer

Oh! x+y=$1500

anonymous · Answer

yes. now you have 2 equations with 2 unknowns. Can you finish it from there?

anonymous · Answer

So now, can I just use the method of substitution to find the values for x and y?

anonymous · Answer

yeah, i'd use substitution.

anonymous · Answer

Thank you so much! Your a life saver! For the life of me I could not remember how to do this!

anonymous · Answer

no problem. i get x=1300 y=200 if you want to check your answer. good luck!

anonymous · Answer

Wonderful! I really appreciate it :).