Question

part of an investment of $54,000 earns 5.5% annual interest; The rest earns 4%. if the annual interest from both is $2685 how much is invested in each rate?

Answer 1

x= 35000

y= 19000

Explanation:

The investment in this question divided into two parts, first who earns 5.5% interest(X) and second who have 4% interest (Y).

The total interest gained is $2685 so you can get this equation.

0.055 x + 0.04 y = 2685

Both x and y sum is $54,000 so you can get this equation

x + y = 54,000

y=54000- x

If you combine both equations

0.055 x + 0.04 y = 2685

0.055 x + 0.04 (54000- x) = 2685

0.055 x + 2160- 0.04x = 2685

0.015x= 2685- 2160

0.015x= 525

x=35000

y=54000- x

y= 54000-35000

y=19000