Question

You invested money in two funds. Last year, the first fund paid a dividend of 9% and the second a dividend of 3%, and you received a total of $879. This year, the first fund paid a 10% dividend and the second only 1%, and you received a total of $839. How much money did you invest in each fund?

Answer 1

Answer: $7800 was invested at 9%

$5900 was invested at 3%

Step-by-step explanation:

Let x represent the amount invested in the fund that paid a dividend of 9%.

Let y represent the amount invested in the fund that paid a dividend of 3%.

Last year, the first fund paid a dividend of 9% and the second a dividend of 3%, and you received a total of $879. This means that

0.09x + 0.03y = 879- - - - - - - - - 1

This year, the first fund paid a 10% dividend and the second only 1%, and you received a total of $839. It means that

0.1x + 0.01y = 839 - - - - - - - - - -2

Multiplying equation 1 by 0.1 and equation 2 by 0.09, it becomes

0.009x + 0.003y = 87.9

0.009x + 0.0009y = 75.51

Subtracting, it becomes

0.0021y = 12.39

y = 12.39/0.0021

y = 5900

Substituting y = 5900 into equation 1, it becomes

0.09x + 0.03 × 5900 = 879

0.09x + 177 = 879

0.09x = 879 - 177

0.09x = 702

x = 702/0.09

x = 7800