Bob received $14,000 inheritance and divided it between a mutual fund that yielded a yearly return of 5% and a 1-year CD that paid 3.5% annually. If his total earnings for the year on this investment was $640, how much did he invest in each of these two funds?
(a/b)14000 goes into the mutual fund with returns 5%
Originally Posted by jsimms
and ((b-a)/b)14000 goes into the CD with return 3.5%.
So (a/b)*14000*0.05 + ((b-a)/b)*14000*0.035 = 640.
I've no calculator at the moment, but that should let you solve easily enough.