A total of $25,000 is invested in two funds paying 3% and 3.5% simple interest. The annual interest is $850. How much is invested in each fund?

Answer 1

a + b = 25000 -----> a = 25,000 - b

0.03a + 0.035b = 850

0.03(25000 - b) + 0.035b = 850

750 - 0.03b + 0.035b = 850

0.005b = 100

b = $20,000

a = 25,000 - 20,000

a = $5000