Question

$5000 is invested at 3% interest. How much money must be invested at 5% interest so that the total interest from the two investments is $275 after one year?

Answer 1

$2500 is invested at 5%

Explanation:

$5000 is invested at 3% interest

= $5000 x 0.03 = $150

The two investments is $275 after one year: so $275 - $150 = $125

The second investment is $125 at 5%

So $125 / 0.05 = $2500

Answer: $2500 is invested at 5%