Two investments totaling
$53,500 produce an annual income of $4030. One investment yields
10% per year, while the other yields
4% per year. How much is invested at each rate?

Question

Two investments totaling 
$53,500 produce an annual income of $4030.  One investment yields 
10% per year, while the other yields 
4% per year.  How much is invested at each rate?

whpalmer4 · Answer

You can express this problem with two equations.  Let A be the investment yielding 10%, and B the investment yielding 4%.

1) A + B = 53500
The two investments total $53,500.

2) 10%*A + 4%*B = 4030.
The annual income from the investment yielding 10% and the investment yielding 4% is $4030.

Solve the system of equations for A and B to get the investment amounts.