Question

Jackie invests 25000 part at 5.5% annual interest and the balance at 8.3% annual interest. How much is invested at each rate if jackie receives a 1 year interest payment of 1571?

Answer 1

Two variables, lets call the first X and the other is obviously the remainder from 25000 so subtract X and its the second variable:

1 ~ (X)
2 ~ (25000 - X)

So now we need to set up the interest equation like so:

Interest Gained =
Amount[1] * Interest Rate [1] + Amount[2] * Interest Rate[2]

In this example the interest earned is given as 1571, we will call Amount[1] as the variable X with interest rate 8.3% and Amount[2] would be the remainder or 25000 - X at the interest rate of 5.5%.

1571 = (X)*0.083 + (25000 - X)*0.055

Now Just solve for X to get the amount invested at 8.3%:

1571 = 0.083X + 1375 - 0.055X
196 = 0.028X
X = 7000

Solve equation 2 to get the amount invested at 5.5%:

1 ~ X = 7000
2 ~ 25000 - X = 25000 - 7000 = 18000

So he invested $7000 at 8.3% interest and $18000 at 5.5% interest.




Did i help?

Answer 2

yes thank you

Answer 3

Could i have a medal? &' your welcome