SOLUTION: You have $4000 to invest in two stock funds. The first fund pays 5% annual interest and the second pays 3% annual interest. If after a year you have made $152

Algebra ->  Coordinate Systems and Linear Equations  -> Linear Equations and Systems Word Problems -> SOLUTION: You have $4000 to invest in two stock funds. The first fund pays 5% annual interest and the second pays 3% annual interest. If after a year you have made $152      Log On


   

Question 1172940: You have $4000 to invest in two stock funds. The first fund pays 5% annual interest and the second pays 3% annual interest. If after a year you have made $152 in interest, how much money did you invest in each account?
Answer by VFBundy(438) About Me  (Show Source):
You can put this solution on YOUR website!
5% fund
Principal = p
Rate = 0.05
Interest = 0.05p

3% fund
Principal = 4000 - p
Rate = 0.03
Interest = 0.03(4000 - p) = 120 - 0.03p

(0.05p) + (120 - 0.03p) = 152

0.05p + 120 - 0.03p = 152

0.02p = 32

p = 1600

5% fund
Principal = p = $1600

3% fund
Principal = 4000 - p = 4000 - 1600 = $2400