Question

An executive invests $22,000 some at 7% ad some at 6% annual interest. If he receives an annual return of $1,420, how much is invested at each rate?

Answer 1

he invested $10,000 at 7% and $12,000 at 6%

Explanation:

• There are 2 equations that appear from this problem

• X+Y=22,000 and 0.07x + 0.06y = 1420

• Lets start by simplifying X+Y=22000

Y = 22000 - x

• now plug this into the Y value for the other equation

0.07x + 0.06(22000-x) = 1420

0.07x + 1320 -0.06x = 1420

0.01x = 100

X = 10000

• now plug 10000 into x for the simplified equation

Y = 22000 - 10000

Y = 12000