Question

You invested a total of $30,000 in 2 funds earning 8.5% and 10% simple interest. During 1 year, the 2 funds earned a total of $2700 in interest. How much did you invest in each fund?

Answer 1

$20,000 and $10,000.

Explanation:

For simple interest we have the relation.

I = PRT/100 where I = interest, P = amount invested, R = rate of interest, T = the time.

If you invest x dollars in one fund you invested 30,000 - x in the other fund.

So we have the equations

x*8.5 * 1 / 100 + (30000 - x)* 10 * 1 / 100 = 2700

8.5x + 300000 - 10x = 270,000

1.5x = 30000

x = 30,000 / 1.5

= $20,000 (answer).

Answer 2

$20,000 is invested in 8.5% and $10,000 is invested at 10%

Explanation:

see attachment