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13 votes
13 votes
Jiao-long made

twO
investments, one at 8% interest and
the other at 6%. He decided to invest
$1000 more at 8% than at 6%. What
amount is invested at each rate, if
the interest from both investments
combined is $640 per year?

User Giorgos Neokleous
by
3.0k points

1 Answer

20 votes
20 votes

Step-by-step explanation:

Let x represent the amount invested at 8% interest, and y represent the amount invested at 6%.

We are given that:

-The total investment is $1000 more at 8% than at 6%

-The interest from both investments combined is $640 per year

This can be represented by the equation:

8x + 6y = 640

We also know that:

-x + y = 1000

We can solve for y in terms of x in the first equation:

8x + 6y = 640

6y = 640 - 8x

y = 106.67 - 1.33x

We can plug this value of y into the second equation:

x + y = 1000

x + 106.67 - 1.33x = 1000

-1.33x + 106.67 = 1000

1.33x = 893.33

x = 666.67

We can plug this value of x into the equation for y:

y = 106.67 - 1.33x

y = 106.67 - 1.33(666.67)

y = 106.67 - 888.89

y = -782.22

This is not a possible solution, because we cannot have a negative amount invested.

We can try another method.

Let's say that we invest $2000 in total.

This can be represented by the equation:

8x + 6y = 640

8x + 6(2000-x) = 640

8x + 12000 - 6x = 640

2x = 11660

x = 5830

We can plug this value of x into the equation for y:

y = 106.67 - 1.33x

y = 106.67 - 1.33(5830)

y = 106.67 - 7781.90

y = -7674.23

This is also not a possible solution, because we again cannot have a negative amount invested.

We can try one more method.

Let's say that we invest $4000 in total.

This can be represented by the equation:

8x + 6y = 640

8x + 6(4000-x) = 640

8x + 24000 - 6x = 640

2x = 2860

x = 1430

We can plug this value of x into the equation for y:

y = 106.67 - 1.33x

y = 106.67 - 1.33(1430)

y = 106.67 - 1904.90

y = -1798.23

This is a possible solution.

Therefore, the amount invested at 8% interest is $1430, and the amount invested at 6% interest is $2570.

User Konstant
by
2.5k points