Question

NEED HELP ASAP

An investment banker received a bonus and invested that money in two investments. He put a certain sum of money in the first investment that returned 7% interest after one year. In the second investment he invested four times that of the first investment and got a 14% interest return after one year. If the total interest from his investments after one year was $7,245.00, find the amount invested at each interest rate.

Answer 1

• $11,500 was invested at 7%
• $46,000 was invested at 14%

Explanation:

Let x represent the amount invested at 7%. Then the amount invested at 14% is 4x, and the total return is ...

... 7%·x +14%·4x = $7245

... x(.07 +4·0.14) = $7245 . . . . . change percentages to decimals to help collect terms

... $7245/0.63 = x = $11,500 . . . . the amount invested at 7%

... 4x = 4·$11,500 = $46,000 . . . . the amount invested at 14%