Question

Investments. A self-employed contractor nearing retirement made two investments totaling $15,000. In one year, these investments yielded $1023 in simple interest. Part of the money was invested at 6% and the rest at 7.5%. How much was invested at each rate?

Answer 1

Do you know the simple interest formula?

Answer 2

I do not remember...

Answer 3

I really appreciate your help

Answer 4

http://www.financeformulas.net/Formula%20Images/Simple%20Interest%201.gif

Answer 5

So, using that formula, how would you set up the equation?

Answer 6

Ah. wait. this is a bit different.

Answer 7

So:

Let's suppose x and y is the variable amount.

x + y = 15000

And

0.06x + 0.075y = 1023

Answer 8

Ok...

Answer 9

Can you solve further/

Answer 10

So, x+y=15,000
0.06x+0.075y=1023
x=-y+15000
0.06(-y+15000)+0.075=1023
-0.06y+900+0.075y=1023
-0.015y+900=1023
-0.015y=-900+1023
-0.015y=123
-0.015y/-0.015=123/-0.015
y=-8200
y=-(-8200)
y=8200
x=-8200+15000
x=6800

Answer 11

Is this correct?

Answer 12

Perfect.

Answer 13

Thank you!!!! You are awesome!!!!