Problema Solution
A mutual fund pays 6% interest on all funds deposited for 1 month or longer. Jim wants to take advantage of the 6% interest rate and transfers a portion of his savings account to the mutual fund. After one year, Jim's investment in the mutual fund has earned $125 in interest. How much of his savings did jim invest in the mutual fund?
Answer provided by our tutors
INTEREST=PRINCIPAL AMOUNT INVESTED*RATE OF INTEREST*TIME
125=PRINCIPAL AMOUNT*6/100*1
125*100/6=PRINCIPAL AMOUNT
HENCE AMOUNT INVESTED=$2083.33