Question

A total of $10,000 is invested in two funds, Fund A and Fund B. Fund A pays 5% annual interest and Fund B pays 7% annual interest. The combined annual interest is $630. How much of the $10,000 is invested in Fund B

Answer 1

The amount put in the account that paid 7% ( Fund B) was $6,500

Explanation:

Let

x -----> the amount put in the account that paid 5% (Fund A)

$10,000-x -----> the amount put in the account that paid 7% (Fund B)

in this problem we have

`5\%=5/100=0.05`

`7\%=7/100=0.07`

so

`630=x(0.05)+(10,000-x)0.07`

`630=0.05x+700-0.07x`

`0.07x-0.05x=700-630`

`0.02x=70`

`x=\$3,500`

`\$10,000-x=\$6,500`

therefore

The amount put in the account that paid 7% ( Fund B) was $6,500