Question

The amount of $15,000 is invested in two funds paying 2% and 5% simple interest. If the annual interest is $540, how much of the $15,000 is invested in each interest rate?

Answer 1

The amount $15000 is divided as

in 2% = $7000

in 5% = $8000

Explanation:

It is given that the total amount is $15000 and rates of interests are 2% and 5%.

Let the amount invested in 2% be "x", so the amount invested in 5% is (15000 - x).

The annual interest on x part is given as,

=
`((2)/(100))(x)`

Similarly, The annual interest on (15000 - x) part is given as,

=
`((5)/(100))(15000 - x)`

the total annual interest is given as $540

Thus, 540 =
`((5)/(100))(15000 - x) + ((2)/(100))(x)`

54000 =
`2(x) + 75000 - 5(x)`

21000 = 3(x)

x =
`(21000)/(3)` = 7000

Thus the shares are $7000 and (15000 - 7000) $8000 .