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