Question

Gunther invested $10,000 in two mutual funds. One of the fun rose 6% in one year, and the other rose 9% in one year. If Gunther's investment rose a total of $684 in one year how much did he invest in each mutual fund.

Answer 1

The amount invested at 6% was $7,200 and the amount invested at 9% was $2,800

Explanation:

Let

x ----> the amount invested at 6%

10,000-x -----> the amount invested at 9%

we know that

The interest earned in one year by the amount invested at 6% plus the interest earned by the amount invested at 9% must be equal to $684

Remember that

`6\%=6/100=0.06`

`9\%=9/100=0.09`

so

The linear equation that represent this problem is

`0.06x+0.09(10,000-x)=684`

solve for x

`0.06x+900-0.09x=684`

`0.09x-0.06x=900-684`

`0.03x=216`

`x=\$7,200`

`\$10,000-x=\$10,000-\$7,200=\$2,800`

therefore

The amount invested at 6% was $7,200 and the amount invested at 9% was $2,800