You win $10 000 in a Best Math Student competition. Being a generous person, you decide to invest the money

1 answer:

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Cumulative costs of the investments of a mutual fund you currently hold are the amount invested. Net Investment is one investment action's net amount of inflow.

Invested Amount in PP $\bold{= \$2400}$
Invested Amount in TT $\bold{= \$(10000 - 2400) = \$7600}$

Solution:

The formula for calculating the simple interest:

$\to \text{Simple interest} = principal \times rate \times time$

Total amount = 10000

Let :

Invested Principle (PP) $\bold{= r}$ ............................. (i)
Invested Amount in TT $\bold{= 10000 - r}$ ................................. (ii)

From both investments total earned interest = $620

$\to \bold{PP \ investment \ return + TT \ investment\ return = 620}$

$\to (r \times 10\% \times 1) + (10000 - r \times 5\% \times 1) = 620\\\\\to (r \times \frac{10}{100} \times 1) + (10000 - r \times \frac{5}{100} \times 1) = 620\\\\\to (r \times 0.10 \times 1) + (10000 - r \times 0.05 \times 1) = 620\\\\\to 0.1r + 500 - 0.05r = 620\\\\\to 0.05r = 620 - 500\\\\\to 0.05r = 120\\\\\to r =\frac{ 120}{0.05}\\\\\to r = 2400$