Question

You invest $22,000 in 3 funds, fund A, fund B and fund C. You invest twice as much in fund C as fund B. Annually, fund A yields 5%, fund B yields 8% and fund C yields 4%. The annual interest from funds A and B alone yielded $750. How much was invested in the fund A

Answer 1

Answer:

$7,000 was invested in Fund A

Explanation:

As per given Condition

A + B + C = $22,000 (1)

A5% + B8% = $750 (2)

As given

C = 2B

Placing C value in 1

A + B + 2B = $22,000

A +3B = $22,000 (3)

Multiplyin (2) by 20

A (0.05) x 20 + B (0.08) x 20 = $750 x 20

A + 1.6 B = $15,000 (4)

Subtracting (4) from (3)

A +3B - (A + 1.6 B ) = $22,000 - $15,000

A +3B - A - 1.6 B ) = $7,000

1.4 B = $7,000

B = $7,000 / 1.4

B = $5,000

As

C = 2B

C = 2 x $5000

C = $10,000

Placing value of B and C in (1)

A + $5000 + $10,000 = $22,000

A + $15,000 = $22,000

A = $22,000 - $15,000

A = $7,000

CHECK

A5% + B8% = $750

$7000 x 5% + $5,000 x 8% = $750

350 + $400 = $750

$750 = $750