Question

Two investments totaling $64,500 produce an annual income of $3270. One investment yields 8% per year, while the other yields 2% per year. How much is invested at each rate?

Answer 1

The amount invested at 8% is 64,500-32,000 = 32,500

Explanation:

one investment: 3%, amount: x

the other: 8%, amount: 64,500-x because x is invested at 3%

0.03x+0.08(64,500-x) = 3,560

0.03x+5,160-0.08x = 3,560

-0.05x = -1,600 divide both sides by 0.05 and remember that -/- = +

x = 32,000 This is the amount invested at 3%

The amount invested at 8% is 64,500-32,000 = 32,500