Answer:
The amount invested in each fund is
At rate 1, 3% amount invested = $3,000
At rate 2, 4% amount invested = $5,000
Step-by-step explanation:
Here we have
Interest, I = Principal, P × Rate, R
Therefore, we have for the first rate of 13% (13% = 0.13)
I₁ = P₁ × 0.03
For the second rate of 24% we have
I₂ = P₂ × 0.04
We are told that
I₁ + I₂ = $290
Therefore,
P₁ × 0.03 + P₂ × 0.04 = $290......................(1)
Also
P₁ + P₂ = $8,000............................................(2)
Solving the two equations, we have
Where P₂ = $8,000 - P₁
Substituting in equation (1) we get,
P₁ × 0.03 + ($8,000 - P₁) × 0.04 = $290
$320 - 0.04·P₁ + 0.03·P₁ = $290
-0.01·P₁ = $290 - $320 = -$30
P₁ = $3000 and therefore,
P₂ = $8,000 - P₁ = $8,000 - $3000 = $5,000.
