Question 283771: Kevin invested part of his 10,000 bonus in a certificate of deposit that paid 6% annual simple interest, and the remainder in a mutual fund that paid 11% annual simple interest. If his total interest for that year was $900, how much did kevin invest in the mutual fund?
Found 4 solutions by mananth, ikleyn, greenestamps, josgarithmetic:
Answer by mananth(16949)   (Show Source):
You can put this solution on YOUR website! Kevin invested part of his 10,000 bonus in a certificate of deposit that paid 6% annual simple interest, and the remainder in a mutual fund that paid 11% annual simple interest. If his total interest for that year was $900, how much did kevin invest in the mutual fund?
Let Kevin invest Rs x at 6%
He will invest 10000-x at 11%
6/100 * x +11/100 * = 900
0.06 x +0.11x=900
0.17x =900
x= 900/0.17
x=5294.11 which is the amount invested at 6%
10000-5294.11=4705.89 at 11 %
x=
Answer by ikleyn(53876)  (Show Source):
You can put this solution on YOUR website! .
Kevin invested part of his 10,000 bonus in a certificate of deposit that paid 6% annual simple interest,
and the remainder in a mutual fund that paid 11% annual simple interest.
If his total interest for that year was $900, how much did Kevin invest in the mutual fund?
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The solution in the post by @mananth is incorrect, leading to wrong answer.
I came to bring a correct solution.
Let x be the amount invested at 11%.
Then the amount invested at 6% is (10000-x).
Write the annual interest equation
0.11x + 0.06*(10000-x) = 900.
Simplify and find x
0.11x + 600 - 0.06x = 900,
0.11x - 0.06x = 900 - 600,
0.05x = 300
x = 300/0.05 = 6000.
ANSWER. Kevin invested $6000 in the mutual fund.
CHECK. The total annual interest was 0.11*6000 + 0.06*(10000-6000) = 900 dollars,
which is precisely correct.
Solved correctly.
Answer by greenestamps(13355)  (Show Source):
You can put this solution on YOUR website!
$900 interest on an investment of $10,000 is a rate of return of 9%.
9% is three-fifths of the way from 6% to 11%; that means 3/5 of the total was invested at the higher rate. (If it helps, look at the three percentages 6, 9, and 11 on a number line.)
3/5 of $10,000 is $6000.
ANSWER: He invested $6000 in the mutual fund (and $4000 in the CD)
Answer by josgarithmetic(39823)  (Show Source):
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