Question

If $5,000 is invested at 6% interest, how much money must be invested at 8% interest so that the total interest from the two investments is $660 after one year?

Answer 1

$4500

Explanation:

Simple Interest formula = Principal × Rate × Time

Let the amount of the money invested at 8% Interest = x

Hence:

$5000 × 6% × 1 + x × 8% × 1 = $660

$300 + 0.08x = $660

0.08x = $660 - $300

0.08x = $360

x = $360/0.08

x = $4500

Therefore , the amount that must be invested at 8% interest is $4500