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 $800, how much did kevin invest in the mutual fund?
Answer provided by our tutors
Principal = 10,000
set up equation:
0.11(10,000-x) + 0.06(x) = 800
find x
x = 6000
he invested 6000 for the 6% annual interest and 4000 in the 11% annual interest