Question

You invested money in two funds. Last year, the first fund paid a dividend of 8% and the second a dividend of 5%, and you received a total of $1330. This year, the first fund paid a 12% dividend and the second only 2%, and you received a total of $1500. How much money did you invest in each fund?

Answer 1

You invested 11000 in in 2st fund and 9000 in 2nd fund

Solution:

Given that, You invested money in two funds.

Last year, the first fund paid a dividend of 8% and the second a dividend of 5%, and you received a total of $1330.

This year, the first fund paid a 12% dividend and the second only 2%, and you received a total of $1500.

Let the amount in Fund I be $x and amount in Fund II be $ y

Then, for last year ⇒ 0.08x+0.05y=1330 ----- eqn (1)

And for this year ⇒ 0.12x+0.02y=1500 ------- eqn (2)

Multiply (1) by 2 ⇒ 0.16 x + 0.1 y = 2660

Multiply (2) by 5 ⇒ 0.6 x + 0.1 y = 7500

Subtract the two equations

(2) ⇒ 0.6x + 0.1y = 7500

(1) ⇒ 0.16x + 0.1y = 2660

(-) --------------------------------

0.44x + 0 = 4840

x = 11000

Now, from eqn (2)

0.12(11000) + 0.02y = 1500

0.02y = 1500 – 1320

0.02y = 180

y = 9000

Hence, he invested 11000 in in 2st fund and 9000 in 2nd fund