Problema Solution
a bank invested 460000 last year in mutual funds. The conservative fund earned 6% simple interest. The Growth fund earned 14% simple interest. At the end of the year, the bank had earned $43,000 from these mutual funds. How much did it invest in each fund?
Answer provided by our tutors
let
c = the money invested in conservative fund
g = the money invested in Growth fund
a bank invested 460000
c + g = 460000
the money earned from the conservative fund + the money earned from the growth fund = the bank had earned $43,000 from these mutual funds
0.06c + 0.14g = 43000
by solving the system of equations
c + g = 460000
0.06c + 0.14g = 43000
we find
c = $267,500
g = $192,500
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$267,500 were invested in the conservative fund.
$192,500 were invested in the growth fund.