True/False

A business manager at a healthcare clinic is planning to invest a 25,000 dollar donation into two different low-risk mutual funds to help cover future equipment upgrades. Fund A earns 3% annual simple interest, and Fund B earns 5% annual simple interest. The clinic needs to earn exactly 1,100 dollars in total interest after one year.

To determine the amount to invest in each fund, the manager sets up a system of linear equations where xx represents the amount of dollars invested in Fund A and yy represents the amount of dollars invested in Fund B.

The manager states that the equation representing the total amount invested (the principal equation) is x+y=25,000x + y = 25,000, and the equation representing the interest earned after one year (the interest equation) is `0.03x+0.05y=1,100{}0.03x + 0.05y = 1,100.

True or False: This is a correct mathematical model for this scenario.

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Updated 2026-06-02

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