Wambugu invested a sum of money in a financial institution that paid a commission interest at the rates of 6% and 7% respectively for the first 2 years. At the end of the second year , wambugu withdrew ksh. 1701300. Determine the amount of money that he invested in the institution.
Let's assume that the amount of money Wambugu invested is x.
For the first year, the interest earned on x at a rate of 6% is 0.06*x.
For the second year, the interest earned on x at a rate of 7% is 0.07*x.
At the end of the second year, Wambugu withdrew ksh. 1701300, which includes both the principal amount (x) and the interest earned.
So, the equation would be: x + 0.06x + 0.07x = 1701300
Combining like terms, we get: 1.13x = 1701300
Dividing both sides by 1.13, we get: x = 1701300 / 1.13
Simplifying the right side, we get: x = 1506000
Therefore, Wambugu invested ksh. 1506000 in the financial institution.