Remy has $14,000 to split between a fund paying 4% and a fund paying 7%. To earn 6.1% on the whole amount, how much should go into the 4% fund?
A$9,800
B$5,600
C$7,000
D$4,200
Answer & Solution
Correct answer: D. $4,200
1. Let x be the dollars invested at 4%, so 14,000 - x goes in at 7%.
2. The target interest is 6.1% of 14,000 dollars, which is 854 dollars.
3. Write the interest equation: 0.04x plus 0.07(14,000 - x) equals 854.
4. Distribute: 0.04x plus 980 minus 0.07x equals 854.
5. Combine: 980 minus 0.03x equals 854, so 0.03x equals 126.
6. Divide by 0.03: x equals 4,200 dollars in the 4% fund.
7. The option of $9,800 is the amount that belongs in the 7% fund, the trap for reporting the other account.
_Source: OpenStax Elementary Algebra (CC BY 4.0), Ch 3 "Math Models", section 3.3 Solve Mixture Applications_
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