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Question 1132267: a grocer deposited a certain sum into a high-yield mutual fund that returns a 13% annual simple interest rate. A second deposit, $25,000 more than the first, was placed in a certificate of deposit that returns a 7% annual simple interest rate. The total interest earned on both investments for one year was $4750 How much money was deposited in the mutual fund?
Answer by ikleyn(52775)   (Show Source):
You can put this solution on YOUR website! .
Let x be the amount in dollars deposited in the mutual fund (the value under the question).
Your equation is
interest + interest = total interest, or
0.13x + 0.07*25000 = 4750 dollars,
x =  = 23076.92 dollars. ANSWER
CHECK. 0.13*23076.92 + 0.07*25000 = 4750 dollars. ! Correct !
Solved.
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It is a standard and typical problem on investments.
If you need more details, or if you want to see other similar problems solved by different methods, look into the lesson
- Using systems of equations to solve problems on investment
in this site.
You will find there different approaches (using one equation or a system of two equations in two unknowns), as well as
different methods of solution to the equations (Substitution, Elimination).
Also, you have this free of charge online textbook in ALGEBRA-I in this site
- ALGEBRA-I - YOUR ONLINE TEXTBOOK.
The referred lesson is the part of this online textbook under the topic "Systems of two linear equations in two unknowns".
Save the link to this online textbook together with its description
Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson
to your archive and use it when it is needed.
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