Question

you invest $10,000 in 2 funds. one fund receives 6% interest and the other 9% interest. if the interest you earned was $684, how much did you invest in each fund?

Answer 1

Answer:

The amount invested in fund 1    =  $7,200

The amount invested in fund 2  =  $2,800

Step-by-step explanation:

Here, the total amount invested = $10,000

In Fund 1:

Let us assume the amount invested in fund 1 = m

Rate of interest = 6%

6% of m = $\frac{6}{100} \times m= 0.06 m$

SO, the interest amount when $ m is invested = 0.06 m  .... (1)

In Fund 2:

Let us assume the amount invested in fund 1 = (10,000 - m)

Rate of interest = 9%

9% of (10,000 -m) = $\frac{9}{100} \times (10,000 -m) = 0.09(10,000 -m) = 900 - 0.09 m$

So, the interest amount when $(10,000 -m) is invested = 900 -0.09 m  .... (2)

As given: Total interest = $684

⇒  0.06 m +  (900 - 0.09 m)  = 684

⇒ 900 - 0.03 m = 684

or, 900 - 684 = 0.03 m

or, 216 = 0.03  m

or, m = 216/0.03  = 7200

or, m = 7,200

Hence, the amount invested in fund 1   = m = $7,200

the amount invested in fund 2  = 10,000 - m = 10,000 - 7,200 = $2,800