Carl invests $10000, partly in a secure GIC at 5% and the rest in a mutual fund that he thinks will earn 7.5%.

If he expects to earn the same amount of interest in both, how much did he invest at each rate?

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25 November, 05:24

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Kaylie Logan · Answer 1

0.05 (x) = 0.075 (10,000 - x)

the equation for interest is interest = (principle) (rate) (time)

the time for both are the same, so it cancels

Carl invests $10000, partly in a secure GIC at 5% and the rest in a mutual fund that he thinks will earn 7.5%.If he expects to earn the same amount of interest in both, how much did he invest at each rate?