Problema Solution

Tori invested $8000 in money market funds. Part was invested at5% simple interest, and the rest was invested at7% simple interest. At the end of 1 year, Tori had earned $496 in interest. How much did she invest in each fund?

Answer provided by our tutors

let he invested $ x at5% and $(8000-x) at 7%

5% of x + 7% of (8000-x) = 496

5x + 56000 -7x = 49600

-2x =- 6400

x = 3200

investment at 5% = $6400 and at 7% = $1600