SOLUTION: A professional athlete deposited an amount of money into a high-yield mutual fund that earns 13% annual simple interest. A second deposit, $2500 more than the first, was placed in

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Question 923218: A professional athlete deposited an amount of money into a high-yield mutual fund that earns 13% annual simple interest. A second deposit, $2500 more than the first, was placed in a certificate of deposit earning 7% annual simple interest. In one year, the total interest earned on both investments was $475. How much money was invested in the mutual fund?
Answer by richwmiller(17219) About Me  (Show Source):
You can put this solution on YOUR website!
We don't know the total invested.
We know the difference in the two accounts.
We know that the interest for the two accounts is $475
0.07*x+0.13*y=475
We know that the account at 7% has $2500 more.
x=2500+y
We substitute for x
0.07*(2500+y)+0.13*y=475
We multiply out
175+0.07y+0.13*y=475
We combine like terms.
0.2*y=300
Isolate y
y=$1500 at 13%
x=2500+y
Calculate x
x=$4000 at 7%
Now,we know the total invested is: 5500
Total invested $4000+$1500=$5500
We check
0.07*4000+0.13*1500=475
280+195=475
475=475
Since this statement is TRUE and neither x nor y is negative all is well.
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