Question

Fran invested $700 in two funds that pay 6% and 5.5% annual interest. Fran's annual interest is $40.50. How much of the $700 was invested in each fund?

a) $300 in the 6% fund and $400 in the 5.5% fund
b) $400 in the 6% fund and $300 in the 5.5% fund
c) $350 in the 6% fund and $350 in the 5.5% fund
d) $200 in the 6% fund and $500 in the 5.5% fund

Answer 1

Fran invested $300 in the 6% fund and $400 in the 5.5% fund.

Step-by-step explanation:

Let's assume Fran invested x amount of dollars in the 6% fund and (700-x) amount of dollars in the 5.5% fund.

The interest earned from the 6% fund would be x * 0.06 and the interest earned from the 5.5% fund would be (700-x) * 0.055.

According to the given information, the total annual interest is $40.50.

So, we can set up the equation x*0.06 + (700-x)*0.055 = 40.50.

Solving this equation will give us x = 300 and (700-x) = 400.

Therefore, $300 was invested in the 6% fund and $400 was invested in the 5.5% fund.