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A person invested $8000 for 1 year, part at 8%, part at 10%, and the remainder at 13%. The total annual income from these investments was $910. The amount of money invested at 13% was $800 more than the amount invested at 8% and 10% combined. Find the amount invested at each rate.

User Qpirate
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1 Answer

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Final answer:

To solve the problem, a system of equations was set up and solved using substitution and simplification to find the amount invested at each interest rate: $2200 at 8%, $1400 at 10%, and $4400 at 13%.

Step-by-step explanation:

Let x be the amount invested at 8%, y be the amount at 10%, and z be the amount at 13%. From the problem, we have the following system of equations:

  • x + y + z = 8000 (total investment)
  • 0.08x + 0.10y + 0.13z = 910 (total annual income)
  • z = x + y + 800 (amount at 13% is $800 more than the sum invested at 8% and 10%)

Substitute the third equation into the first equation to get a simplified system:

  • x + y + (x + y + 800) = 8000
  • 0.08x + 0.10y + 0.13(x + y + 800) = 910

Simplify each equation:

  • 2x + 2y = 7200
  • 0.08x + 0.10y + 0.13x + 0.13y + 104 = 910

Simplify further and solve the linear system for x and y:

  • x + y = 3600
  • 0.21x + 0.23y = 806

From the first simplified equation, we can express y in terms of x: y = 3600 - x. Substitute this into the second simplified equation and solve for x to get x = 2200. Then y = 3600 - 2200 = 1400. Finally, using the initial relationships, z = 8000 - x - y, which gives us z = 8000 - 2200 - 1400 = 4400.

The amount invested at each rate is then: $2200 at 8%, $1400 at 10%, and $4400 at 13%.

User KreepN
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