Mr. Smith had $2000 to invest. He invested part of

it at 5 percent per year and the remainder at 4

percent per year. After one year, his investment

grew to $2095. How much of the original

investment was at the 5 percent rate?

Question

Mr. Smith had $2000 to invest.  He invested part of

it at 5 percent per year and the remainder at 4 

percent per year.  After one year, his investment

grew to $2095.  How much of the original 

investment was at the 5 percent rate?

anonymous · Answer

viktor!!!!

anonymous · Answer

Let A=invested at 5% and B=invested at 4%
so A+B=2000---- (i)
also total returns=$95= 5% of A + 4% of B
or 95=0.05A+0.04B----(ii)

multiplying (i) by 0.04 we have 0.04A +0.04B = 80
subtracting this from (ii),
15=0.01A or A=1500-->B=500