Question

A total of $10,000 is invested in two funds, Fund A and Fund B. Fund A pays 5% annual interest and Fund B pays 7% annual interest. The combined annual interest is $630. How much of the $10,000 is invested in Fund B

Answer 1

Answer:

The amount put in the account that paid 7% ( Fund B) was $6,500

Step-by-step explanation:

Let

x -----> the amount put in the account that paid 5% (Fund A)

$10,000-x -----> the amount put in the account that paid 7% (Fund B)

in this problem we have

$5\%=5/100=0.05$

$7\%=7/100=0.07$

so

$630=x(0.05)+(10,000-x)0.07$

$630=0.05x+700-0.07x$

$0.07x-0.05x=700-630$

$0.02x=70$

$x=\ 3,500$

$\ 10,000-x=\ 6,500$

therefore

The amount put in the account that paid 7% ( Fund B) was $6,500