Question

A $24,500 investment was made by Adam into two different pharmaceutical funds. Part of it was invested in a fund that earned 7% per annum and the remainder in a fund that earned 3% per annum. The total interest received after one year was $1,375. Find the amount invested into each of the two funds.

Answer 1

$16,000 invested in the 7% fund

$8,500 invested in the 3% fund

Explanation:

1. Let x=the amount invested in the 7% fund, and y=the amount invested in the 3% fund.

2. Set up equations:

x + y = 24,500 (the total amount of money invested)

0.07x + 0.03y = 1,375 (the total amount of interest earned the first year)

3. Solve the system by whatever method you choose.