Question

Juan had $24400 and chose to split the money into two different mutual funds. During the first year, Fund A earned 4% interest and Fund B earned 6% interest. If he received a total of $1166 in interest, how much had he invested into each account?

Answer 1

Answer: Juan invested $14,900  in Fund A and $9,500 in Fund B.

Step-by-step explanation:

Let x= Amount invested in Fund A .

Since , total amount invested = $24400

Then,  Amount invested in Fund B = 24400-x

Fund A earned 4% interest and Fund B earned 6% interest.

Interest earned by Fund A= 4% of x = 0.04 x

Interest earned by Fund B= 6% of x = 0.06 ( 24400-x)

= 0.06(24400)-0.06x

= 1464-0.06x

Total interest = 0.04x+1464-0.06x= 1464-0.02x

If he received a total of $1166 in interest, then

$1464-0.02x =1166\\\\\Rightarrow\ 0.02x=1464-1166\\\\\Rightarrow\ 0.02x=298\\\\\Rightarrow\ x=\dfrac{298}{0.02}=14900$

So, Amount invested in Fund A = $14900

Amount invested in Fund B = $( 24400-14900  ) = $9500

Hence, Juan invested $14,900  in Fund A and $9,500 in Fund B.