The amount invested in the fund earning 8.5% is $40,000 whereas $20,000 was invested in the fund earning 10%
What is the return on each fund?
The return on each fund is determined as the amount invested multiplied by the interest rate on the fund
;Let X be the amount invested at 8.5%
Interest=8.5%*X=0.085X
The interest of the fund invested at 10%=($60,000-X)*10%
The interest of the fund invested at 10%=$6000-0.10X
Total interest=0.085X+6000-0.10X
Total interest earned during year 1=$5,400
5400=0.085X+6000-0.10X
5400=6000-0.015X
0.015X=6000-5400
0.015X=600
X=600/0.015
X=$40,000(amount invested at 8.5%)
amount invested at 10%=$60,000-$40,000
amount invested at 10%=$20,000
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