Question

Kelly Invested her savings of $4800. She invested part in mutual funds, at 9% per year, and the rest in GIC'S at 10% per year. At the end of the year, the interest from the mutual investments was $43 less than the interest from the GIC investment. how much was invested in each type of investment?

Answer 1

Total money invested by Kelly = 4800

Let the amount she invested in mutual funds = x

Let the amount she invested in GIC's = y

So, x + y = 4800 (1)

Interest in mutual funds = 9% of x =
`(9x)/(100)`

Interest in GIC investment = 10% of y =
`(10y)/(100) =(y)/(10)`

It is given that, at the end of one year, the interest from mutual funds is $43 less than that of from GIC's.

So,
`(9x)/(100) =(10y)/(100) -43`

`(9x)/(100) -(10y)/(100) =-43`

`(9x-10y)/(100) =-43`

9x - 10y = -4300 (2)

Multiplying (1) by 10 and adding (1) and (2), we get,

19x = 43700

`x =(43700)/(19)`

= 2300

x + y = 4800

2300 + y = 4800

y = 4800 - 2300

= 2500

Hence, amount invested in mutual funds is $2300 and the money invested in GIC investment is $2500.