Problema Solution
Tori invested $8000 in money market funds. Part was at 5% simple interest, and the rest was invested at 7% simple interest. At the end of 1 year. Torri had earned $496 in interest. How much did she invest in each fund?
Answer provided by our tutors
let
x = the money invested at the first fund with 5% simple interest
y = the money invested at the second fund with 7% simple interest
Tori invested $8000 in money market funds
x + y = 8000
At the end of 1 year. Torri had earned $496 in interest.
0.05x + 0.07y = 496
by solving the system of equations
x + y = 8000
0.05x + 0.07y = 496
we find
x = $3,200
y = $4,800
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Tori invested $3,200 in the first fund and $4,200 in the second fund.