Question

An amount of $15,000 is invested in a fund that has a return of

6%. How much money is invested in a fund with a 4% return if the
total return on both investments is $1380?

Answer 1

$12000 should be invested in a fund with a 4% return.

Explanation:

Consider the provided information.

An amount of $15,000 is invested in a fund that has a return of 6%.

We need to calculate how much money is invested in a fund with a 4% return if the total return on both investments is $1380.

Let $x should be invested in a fund with a 4% return.

The above information can be written as:

`1380=15000* 6\%+x* 4\%`

`1380=15000* (6)/(100)+x* (4)/(100)`

`1380=150*6+x* 0.04`

`1380-900=0.04x\\480=0.04x\\x=12000`

Hence, $12000 should be invested in a fund with a 4% return.