Question

Two investments totaling $58,500 produce an annual income of $3795. One investment yields 5% per year, while the other yields 7% per year. How much is invested at each rate?

Answer 1

Total investment is =$58500

Annual income produced = $3795

Rate of one investment = 5%

Rate of second investment = 7%

Let the amount invested at 5% be = x

Then, amount invested at 7% rate will be =
`58500-x`

The equation becomes:

5%x + 7%(58500-x) = 3795

= 0.05x + 0.07(58500-x) = 3795

0.05x + 4095 - 0.07x = 3795

0.02x = 300

x = 15000

Hence, the amount invested at 5% is = $15000

Amount invested at 7% = 58500-15000 = $43500