Of the $50,000 that Natsha pocketed on her last real estate deal $20,000 went to charity. She invested part of the remainder in Dreyfus new leaders fund with an annual yield of 16%and the rest in Templeton Growth Fund with an annual yield of 25%. If she made $6060 on these investments in 1 year, then how much did she invest in each fund.
I am getting for the 1st fund investment of $12,000. and second fund $18,000. I am not very sure of my self.
Edit: sorry Jhevon, didnt see you there. Please disregard this
You can check your answer in a question like this by doing the calculation "backwards". In this case, 12 000 in the first fund and 18 000 in the second will yield 12000(0.16)+1800(0.25) = 6420.
Let the amount invested in Dreyfus be x and the amount invested in Templeton be y. Then you know that x+y+20 000=50 000 and that 0.16x+0.25y = 6060. You can then solve these simultaneously.