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An executive invests $26,000, some at 8% and some at 6% annual interest. If he receives an annual return of $1,860, how much is invested at each rate?

User Sbtourist
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Suppose that executive decides to invest X Dollars on the 8% annual interest investment. so that means that he would invest the remaining money on investment with 6% annual interests, which is = (26,000-X)



Total annual return he will get on 8% annual interest investment would be: X/100*8



Total annual return he will get on 6% annual interest investment would be: (26,000-X)*6 /100



We know that total annual return he got was $1,860 which is the sum of annual return of both the investments.



So: X*8/100 + (26,000-X)*6/100 = 1860



We now have a equation with only one variable X and we can find its value by solving this simple equation.



1860= 8X/100 + (26,000-X)*6/100



1860 = 8X/100+ 156000-6X/100



1860 = (8X+ 156000-6X)/100



186000 = 2X + 156000



186000 - 156000 = 2X



30000 = 2X



30000/2 = X



15000 = X



so X= 15000 and Y= 26000-15000 which is 11,000.



Executive invests 15,000 on the 8% annual interest investment and He invests 11,000 on the 6% investment.
User Ali Klein
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