Problema Solution
a company invested $700,000 in two mutual funds. Fund A earned 12% simple interest and Fund B earned 6% interest. The total interest earned by the company from these investments after one year was $69,000. How much was invested in each fund?
Answer provided by our tutors
let
x = the money invested in Fund A
y = the money invested in Fund B
a company invested $700,000 in two mutual funds
x + y = 700000
the total interest earned by the company from these investments after one year was $69,000
0.12x + 0.06y = 69000
by solving the system of equations
x + y = 700000
0.12x + 0.06y = 69000
we find
x = $450,000
y = $250,000
click here to see the step by step solution of the system of equations
$450,000 was invested in Fund A.
$250,000 was invested in Fund B.