Short Answer

Identifying Components of an Investment Interest System

A financial analyst for 'Nexus Corp' is allocating 40,000 dollars into two different investment funds to diversify the company's portfolio. Fund 1 earns 4% annual simple interest, and Fund 2 earns 6% annual simple interest. The analyst sets up the following system of equations to determine how much to invest in each fund to reach a target of 2,100 dollars in total interest income per year:

  1. x+y=40,000x + y = 40,000
  2. 0.04x+0.06y=2,100{}0.04x + 0.06y = 2,100

In the context of the second equation, what specific quantity is represented by the term 0.06y{}0.06y?

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Updated 2026-05-22

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