Question

$5,000 is invested at 3% interest.
How much money must be invested at 5% interest so that the total interest from the two investments is $275 after one year?
$2,000
$2,500
$3,000

Answer 1

Interest earned=(Principle*interest rate)*years (simple interest)
\[275=5000\times0.03+P \times0.05\]
\[150+(P \times0.05 )=275\]
subtract 150 from both sides
\[P \times 0.05=125\]
divide both sides to isolate P.

Answer 2

so 2500

Answer 3

Correct.