How much invested in each type of investment? Define the variables.Kelly invested her savings of $4800. She invested part in mutual funds, at 9%/yr & the rest in GIC at 10%/yr. At end of year,...

How much invested in each type of investment?

Define the variables.

Kelly invested her savings of $4800. She invested part in mutual funds, at 9%/yr & the rest in GIC at 10%/yr. At end of year, the interest from mutual funds investment was $43 less than interest from GIC investment.

Asked on by binghams

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lfryerda's profile pic

lfryerda | High School Teacher | (Level 2) Educator

Posted on

Let x be the amount invested in the mutual fund and let y be the amount invested in the GIC.  

Since the amount at the end of an investment period is `A=P(1+i)` , this means that the interest at the end of the investment period is I=Pi:

The amount of interest at the end of the year for the mutual fund is `I_M=x(0.09)=0.09x` .  The amount of interest at the end of the year for the GIC is `I_G=y(0.10)=0.1y` .

We also know that `x+y=4800` , so `y=4800-x` .  Since the interest from the mutual fund is $43 less than the interest from the GIC, then we can compare interest amounts to get:

`0.09x=0.1y-43` now sub in what we know 

`0.09x=0.1(4800-x)-43`   multiply by 100

`9x=48000-10x-4300`  move x to left side, simplify right side

`9x+10x=43700`  simplify

`19x=43700`    divide by 19

`x=2300`

This means that `y=4800-2300=2500` .

The amount invested in mutual funds is $2300 and the amount in å GIC is $2500.

widowspeak's profile pic

widowspeak | (Level 1) Honors

Posted on

Let x = amount in mutuals, then we know the amount in GIC is 4800 - x. Hence:

x * 0.09 + 43 = (4800 - x)*0.1

this implies

0.19 * x = 4800*0.1 - 43

0.19 * x = 437

=> x = 2300

So $2300 was invested in mutuals and 4800-2300 = $2500 in GIC.

 

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