A $10,000 investment is made partly in a GIC at 5% and partlly in a mutual fund that will earn 7.5%. If the same amount of interest is earned in both, how much was invested in each rate?

Question

Mathematics

Finnegan Thomas

20 August, 13:24

A $10,000 investment is made partly in a GIC at 5% and partlly in a mutual fund that will earn 7.5%. If the same amount of interest is earned in both, how much was invested in each rate?

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Answers (1)

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Monserrat · Answer 1

Hi there

If the same amount of interest is earned in both so we should create the equation according to that

0.05x=0.075 (10000-x)

Solve for x

0.05x=0.075*10000-0.075x

0.05x=750-0.075x

0.05x+0.075x=750

0.125x=750

X=750:0.125

X=6000 invested at 5%

10000-6000=4000 invested at 7.5%

Check your answer

0.05*6000=0.075*4000

300=300

Good luck!