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An amount of 1000 has to be divided into two funds, one offering 16% returns and the...

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timw996 | Student, Grade 10 | Salutatorian

Posted September 3, 2013 at 4:47 PM via web

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An amount of 1000 has to be divided into two funds, one offering 16% returns and the other offering 10% returns. How much should be invested in each to make returns of 12%

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justaguide | College Teacher | (Level 2) Distinguished Educator

Posted September 3, 2013 at 4:52 PM (Answer #1)

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The total amount that has to be invested is 1000. There are two funds in which the money can be invested, one of them gives returns of 16% and the other gives returns of 10%.

Let the amount invested in the fund offering 16% returns be X, the amount invested in the other fund is 1000 - X.

0.16*X + 0.10*(1000 - X) = 0.12*1000

=> 0.16*X + 100 - 0.1*X = 120

= 0.06*X - 20

=> X = 20/0.06

=> X = 333.34

An amount equal to 333.33 should be invested in the fund offering 16% and the remaining amount of 666.67 should be invested in the fund offering 10% returns.

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