Question

Jeffery invested $2500, part at 8% per annum and the rest at 10% per annum. In one year, the two parts earned the same amount of interest. How much did he invest at each rate?

A) $1000 at 8% and $1500 at 10%.
B) $1500 at 8% and $1000 at 10%.
C) $2000 at 8% and $500 at 10%.
D) $1000 at 8% and $2000 at 10%.

Answer 1

Jeffery invested $1388.89 at 8% and $1111.11 at 10%.

Step-by-step explanation:

To solve this problem, we can set up an equation. Let x represent the amount invested at 8% and (2500 - x) represent the amount invested at 10%.

The interest earned from both investments is given by: 0.08x = 0.10(2500 - x). Now, we can solve for x: 0.08x = 0.10(2500 - x).

Distributing the 0.10, we get 0.08x = 250 - 0.10x. Combining like terms, we have 0.18x = 250.

Dividing both sides by 0.18, we find x = 250/0.18 = $1388.89. Therefore, Jeffery invested $1388.89 at 8% and the remaining amount, $2500 - $1388.89 = $1111.11, at 10%.