I've been having a tough time with this one. Every time I work the equation out it is either a negative amount, or is much larger than the original invested amount. Please Help.
An investor invested a total of 5200 in two mutual funds. One fund earned 6% profit and the other fund earned 3%. The Total profit was $84. How much was invested in each mutual fund?
What I have so far:
x+y=5200
.06x+.03y=84
Note:Then I solve by substitution. Please tell me if I'm crazy, but it doesn't seem to have the correct numbers for the equation to be properly solved.
If $x$ and $y$ are both positive, you would expect the overall profit rate to be between $3\%$ and $6\%$
But $84$ is about $1.6\%$ of $5200$, so you will not get sensible solutions: $x$ must be negative (selling short?) to get this kind of result
Or perhaps lulu is correct and the profit rates have been annualised, and in fact were $3\%$ and $1.5\%$ over half a year, in which case $1.6\%$ combination would work, with $y$ much bigger than $x$