Problema Solution
A broker has invested $24,000 in two mutual funds, one earning 9% annual interest and the other earning 14%. After 1 year, his combined interest is $3,060. How much was invested at each rate?
Answer provided by our tutors
let
x = the money invested in the fund earning 9% annual interest
y = the money invested in the fund earning 14% annual interest
a broker has invested $24,000 in two mutual funds
x + y = 24000
after 1 year, his combined interest is $3,060
0.09x + 0.14y = 3060 multiply both sides by 100
9x + 14y = 306000
by solving the system of equations
x + y = 24000
9x + 14y = 306000
we find
x = $6,000
y = $18,000
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$6,000 were invested at 9% annual rate.
$18,000 were invested at 14% annual rate.