Chapter 3: Q. 3.65 (page 349)

Remy has $$ 14, 000$ to invest in two mutual funds. One fund pays interest at $4 %$ per year and the other fund pays interest at $7 %$ per year. How much should she invest in each fund if she wants to earn $6.1 %$ interest on the total amount?

Short Answer

Expert verified

Remy should invest $$ 4200$ in the fund that pays $4 %$ and data-custom-editor="chemistry" $$ 9800$ in the fund that pays $7 %$ .

Step by step solution

Step 1. Given information.

Consider the given question,

Remy has $$ 14000$ to invest.

Interest of one fund is $4 %$ .

Interest of another fund is $7 %$ .

Assume x to be the amount invested at $4 %$ . Then,

$14000 - x =$ amount invested at $7 %$

Make the table,

Step 2. Form the equation.

Consider the table, we can say,

$0.04 x + 0.07 (14000 - x) = 0.061 (14000) 0.04 x + 980 - 0.07 x = 854 0.03 x = 126 x = 4200$

Then,

$= 14000 - 4200 = 9800$

Therefore, Remy should invest $$ 4200$ in the fund that pays $4 %$ and $$ 9800$ in the fund that pays $7 %$ .

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Remy has $$ 14, 000$ to invest in two mutual funds. One fund pays interest at $4 %$ per year and the other fund pays interest at $7 %$ per year. How much should she invest in each fund if she wants to earn $6.1 %$ interest on the total amount?

Short Answer

Step by step solution

Step 1. Given information.

Step 2. Form the equation.

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Remy has $14,000 to invest in two mutual funds. One fund pays interest at 4% per year and the other fund pays interest at 7% per year. How much should she invest in each fund if she wants to earn 6.1% interest on the total amount?

Short Answer

Step by step solution

Step 1. Given information.

Step 2. Form the equation.

One App. One Place for Learning.

Most popular questions from this chapter

Recommended explanations on Math Textbooks

Mechanics Maths

Theoretical and Mathematical Physics

Calculus

Pure Maths

Logic and Functions

Probability and Statistics

Study anywhere. Anytime. Across all devices.

Remy has $$ 14, 000$ to invest in two mutual funds. One fund pays interest at $4 %$ per year and the other fund pays interest at $7 %$ per year. How much should she invest in each fund if she wants to earn $6.1 %$ interest on the total amount?