Question

You invest $40,000 in two funds paying 4% and 52% simple interest. The total annual interest is $2080. How much do you invest in each fund?

4% fund:
52% fund:

Answer 1

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Answer:

• 4% fund: $39,000
• 52% fund: $1000

Explanation:

Let x represent the amount invested at 52%. Then (40000-x) is the amount invested at 4%. The total annual interest is ...

0.52x +0.04(40000-x) = 2080

0.48x = 480 . . . . . . . . . subtract 1600, simplify

x = 1000 . . . . . . . . . divide by 0.48

Then the amounts invested in each fund are ...

4% fund: $39,000

52% fund: $1000