Problema Solution
Tori invested 8000 in money market funds. Part was invested at 5% simple interest and the rest was invested at &% 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
You set up a system of equations. The first equation is x + y = 8000 and the other is 0.05x +0.07y = 496. Solve for y in the first equation and you get y = 8000 - x. Now you can substitute this into the second equation for y. ---> 0.05x + 0.07(8000 - x) = 496 ---> 0.05x + 560 - 0.07x = 496
This gives you -0.02x = -64, divide both sides by -0.02 to isolate x and you get 3,200.
Plug this back into the first equation and you get y = 4,800.
They invested $3,200 at 5% interest rate and $4,800 at 7% interest rate.