Problema Solution
kevin invested part of his $10,000 bonus in a certificate of deposit that paid 6% annual simple interest, and the remainder in a mutual fund that paid 11% annual simple interest. if his total interest for that year was $900, how much did kevin invest in the mutual fund?
Answer provided by our tutors
let
x = the money invested in a certificate of deposit that paid 6% annual simple interest
10,000 - x = the reminder invested in a mutual fund that paid 11% annual simple interest
the total interest for that year was $900
0.06x + 0.11(10000 - x) = 900
by solving we find
x = $4,000
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10,000 - 4,000 = 6,000
Kevin invested $6,000 in a mutual fund.