Juanita invests 12000 in two different ways A part of mone

Juanita invests $ 12,000 in two different ways . A part of money , buy mutual funds that offer a yield of 4.5 % per year . puts the rest on the bench with 5% interest per annum. The first year investments give you a profit of $ 562.50 . How much it invested in every way?

Solution

Here let he invests $x in mutual funds, so clearly rest $(12000-x) is put on the bench.

So last amount after one year on mutual funds = initial amount + interest= x + 0.045 x = 1.045x

so total profit on mutual funds = last amount - initial amount = 1.045 x - x = 0.45x

Again the last amount on bench = its initial amount + interest on rate

= (12000-x)+0.05 (12000-x) = 12000-x + 0.05(12000) -0.05x =12000 -1.05x +600

=12600- 1.05 x

So profit on this amount = last amount - initial amount = 12600 - 1.05 x - (12000-x ) = 600 -0.05x

Now as both profit are equal to 562.50

so 0.045x + 600 - 0.05x = 562.5

600 - 0.005x = 562.5

-0.005x= 562.5 - 600 = -37.5

or x= 37.5/ 0.005 = 7500

that means $7500 is invested in mutual fund

and $ 4500 is inveseted on the bench.

Answer