Investment Problem: DNL Fund @ 16%, TG Fund @ 25%, $6060 int

[nurse]

Hi guys. Here is the question I'm struggling with: Of the $50,000 that Natasha pocketed on her last real estate deal, $20,000 went to charity. She invested part of the remainder in Dreyfus New Leaders Fund with and 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 know that I'm dealing with $30,000 but I'm not sure how to set the problem up. My initial thoughts were: 30,000 over x times 0.16 + 30,000 over x times 0.25 =6060. But that is not working out for me.

 

[stapel]

Of the $50,000 that Natasha pocketed on her last real estate deal, $20,000 went to charity. She invested part of the remainder in Dreyfus New Leaders Fund with and 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?

Try using the standard set-up for investment-type exercises:

. . .invested:
. . . . .at 16%: x
. . . . .at 25%: 30 000 - x
. . . . .total: 30 000

. . .rates:
. . . . .at 16%: 0.16
. . . . .at 25%: 0.25
. . . . .total: [can't add rates, so not relevant]

. . .interest:
. . . . .at 16%: 0.16x
. . . . .at 25%: 0.25(30 000 - x)
. . . . .total: $6060

Since the total interest is the sum of the interest amounts from the two accounts, sum the amounts and set equal to the total. Then solve the equation for the value of the variable. Interpret this value in the context of the exercise, and then back-solve for the other value you need.

If you get stuck, please reply showing how far you have gotten in following the steps. Thank you!

Eliz.