word problems

Question

Sally invested $3000 more dollars in a mutual fund account last year than she did in a saving account. The return on the mutual fund account was 10% last year, while the saving account paid 6% annual interest. How much was invested in each account last year if the return from both accounts was $1100?

Answer 1

m = s + 3000

.1m + .06s = 1100

 

.1(s + 3000) + .06s = 1100

.1s + 300 + .06s = 1100

.16s = 800

s = 5000

 

m = 5000 + 3000 = 8000

Answer 2

If she invested $x at 6% in savings, then

she invested $(x+3000) at 10% in mutual fund:

 

1100 = .1(x+3000) + .06x

 

1100 = .1x + 300 + .06x

1100 = .16x + 300

800 = .16x

x = 800/.16

 

x = $5000 in savings

 

x+3000 = $8000 in mutual fund