Question

An investor has $7500 invested at one rate and $6200 invested at a different rate. If the second invest-

ment is at a rate 2% lower than the first, find the rate for each investment if his combined annual interest
income is $698.

Answer 1

r - 0.02.

Explanation:

Let’s do the rate of the first investment as r (in decimal form), so the rate of the second investment would be r - 0.02. The total interest earned from both investments is $698.

We can set up the following equations based on the problem:

For the first investment: 7500 * r = interest1

For the second investment: 6200 * (r - 0.02) = interest2

The total interest from both investments is $698, so we have: interest1 + interest2 = 698

Substituting interest1 and interest2 from the first two equations into the third equation gives us:

7500 * r + 6200 * (r - 0.02) = 698

Solving this equation will give us the value of r, the rate for the first investment. The rate for the second investment would then be r - 0.02.

Answer 2

6% and 4%

Explanation:

We'll write an equation, x being the higher investment rate

7500(x/100)+6200((x-2)/100)=698
now we solve it and get that x = 6

so that means that theres a 6% investment rate on the 7500 and a 4% investment rate on the 6200.

have a good day!

-birb