Question

Colton invests $1,000. He invests part of it in IBM and after one year earns 5% on his

investment. He invests the other part of the $1,000 in MacIntosh and after one year
earns 8% on his investment. If his total interest after one year is $60.80, how much did
he invest in each?

Answer 1

Solution:-

Here,

let, P=$1000

Money vested in IBM= x

Interest=(x×1×5)/100

=5x/100

Money invested in Macintosh=1000-x

Interest=((1000-x)1×8)/100

=(8000-8x)/100

Now,

Total Interest=5x/100 + (8000-8x)/100

or, 60.80=(5x+8000-8x)/100

or, 60.80×100=-3x+8000

or, 6080-8000=-3x

or, -1920/-3=x

x=$640

1000-x=1000-640

=360

Thus, Colton invested $640 in IBM, and $360 in Macintosh.