Barney and George invested the same amount in two funds. Barney earned 4% and Fred earned 2%. If they earned $420 together. how much did they each invest?
1. let "x" be the amount they invested
2. let both their total investments equal 420 (Ex. Barney: 0.04x Fred: 0.02x)
3. Write equation:
0.04x + 0.02x = 420
4. Solve!!! :D
To solve this problem, we can set up a system of equations.
Let's assume that Barney and Fred both invested the same amount, x, in two funds.
Barney earned 4% of his investment, which is 0.04x.
Fred earned 2% of his investment, which is 0.02x.
According to the problem statement, the total amount they earned together is $420. So, we can set up the following equation:
0.04x + 0.02x = 420
Combining like terms, we get:
0.06x = 420
Now, we can solve for x by dividing both sides of the equation by 0.06:
x = 420 / 0.06
x ≈ $7000
Therefore, Barney and Fred each invested approximately $7000.