# SOLUTION: Juan pLast year, Juan won a radio station contest for \$25,000. He put part in a saving account that paid 3% interest, and the rest in a mutual fund that paid a 25% dividend. If the

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 Click here to see ALL problems on Travel Word Problems Question 4291: Juan pLast year, Juan won a radio station contest for \$25,000. He put part in a saving account that paid 3% interest, and the rest in a mutual fund that paid a 25% dividend. If the return on his investments was \$5,150, how much did he put in each investment?Answer by Earlsdon(6294)   (Show Source): You can put this solution on YOUR website!First: Assign the variables. Let x = the amount invested in the savings account @ 3% Let y = the amount invested in the mutual fund @ 25% Second: Write the sytem of equations. Change the percents to their decimal equivalents. 3% = 0.03 25% = 0.25 0.03x + 0.25y = \$5,150.00 Total interest earned. x + y = \$25,000.00 Total amount invested. Rewite as x = \$25,000.00 - y and substitute for x in the first equation. 0.03(\$25,000.00 - y) + 0.25y = \$5.150.00 Solve for y. \$750.00 - 0.03y + 0.25y = \$5,150.00 Simplify. \$750.00 + 0.22y = \$5,150.00 Subtract \$750.00 from both sides. 0.22y = \$4,400.00 Divide both sides by 0.22 y = \$20,000.00 Now find x. x = \$25,000 - y x = \$25,000.00 - \$20,000.00 x = \$5,000.00 Juan invested \$5,000.00 in the savings account @ 3% interest, and \$20,000.00 in the mutual fund @ 25% interest. Check: 0.03(\$5,000.00) + 0.25(\$20,000.00) = \$150.00 + \$5,000.00 = \$5,150.00