SOLUTION: Ok I'm studying for my exam and these word problems are killing me. So the question is: Anthony has $25,000 to invest into two different funds. Fund A earns 4.5% simple interest

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Question 791858: Ok I'm studying for my exam and these word problems are killing me.
So the question is: Anthony has $25,000 to invest into two different funds. Fund A earns 4.5% simple interest. Fund B earns 5% simple interest. How much should he invest in Fund A so that he earns $1,175 in simple interest for one year?


I have tried 25000*.045x=1175
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
I'll get you started

Let x = amount of money to invest in fund A, y = amount of money to invest in fund B

Since he has $25,000 to invest, this means that the two smaller amounts x and y must add to 25000 like so

x%2By+=+25000

Solve for y to get

y+=+25000+-+x

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Fund A earns 4.5% simple interest, so in one year you'll have 0.045x dollars from fund A

Fund B earns 5% simple interest, so in one year you'll have 0.05y dollars from fund B

You want the total of these two interest results to add to $1175, so that means we can set this up

0.045x%2B0.05y=1175

0.045x%2B0.05%2825000+-+x%29=1175 Plug in y+=+25000+-+x

0.045x%2B0.05%2825000%29+%2B+0.05%28-x%29=1175 Distribute

0.045x%2B1250+-+0.05x=1175 Multiply

I'll let you finish up.