Answer: he invested $2500 in fund 1 and $6500 in fund 2
Step-by-step explanation:
Let x represent the amount of money invested in fund 1.
Let y represent the amount of money invested in fund .
Total amount of money invested in fund 1 and fund 2 is
x + y = 9000
x = 9000 - y - - - - - - - - - 1
The formula for simple interest is expressed as
I = PRT/100
Where
P is the principal or initial amount.
T is the duration in years
R is the number rate.
For fund 1,
R = 4%
T = 1 year
P = x
I = (x × 4 × 1)/100 = 0.04x
For fund 2,
R = 7%
T = 1 year
P = y
I = (y × 7 × 1)/100 = 0.07y
At the end of the year, the total interest from these investments was $555. This means that
0.04x + 0.07y = 555 - - - - - - - -2
Substituting equation 1 into equation 2, it becomes,
0.04( 9000 - y) + 0.07y = 555
360 - 0.04y + 0.07y = 555
- 0.04y + 0.07y = 610 - 360
0.03y = 195
y = 195/0.03 = 6500
x = 9000 - 6500
x = $2500
