Question

George invested $2000 at two different rates, 5% and 6%. If his total interest income was $106 how much did he invest at each rate?

Answer 1

Given:

Total investment = $2000
rate 1 = 5%
rate 2 = 6%

Total interest income = $106

let x = investment at 5%
2000 - x = investment at 6%


$106 = A1 + A2

A = P(i(1+i)^n/ (1+i)^n -1)

Assume n = 1

Solve for x.