Question

Larry Mitchell invested part of his $25,000 advance at 2% annual simple interest and the rest at 3% annual simple interest. If his total yearly interest from both accounts was $510, find the amount invested at each rate.

Answer 1

• $1000 at 3%
• $24000 at 2%

Explanation:

Let x represent the amount invested at 3%. Then the total interest earned is ...

0.03x +0.02(25000 -x) = 510

0.01x = 10 . . . . . . . . . . . . subtract 500, collect terms

x = 1000

Mitchell invested $1,000 at 3% and $24,000 at 2%.