Question

Suppose Linda's mom invests $10,000, part at 3% and the rest at 2. 5%, in interest bearing accounts. The total yearly income (interest) is $283. How much did lindsay's mom invest at each rate?

Answer 1

• $6,600 at 3%
• $3,400 at 2.5%

Explanation:

You want to know the investments at 3% and 2.5% interest if the total invested is $10,000 and the annual income is $283.

Solution

Let x represent the amount invested at 3%. The (10000 -x) is the amount invested at 2.5%, and the interest earned is ...

0.03(x) +0.025(10,000 -x) = 283

0.005x +250 = 283

x = 33/0.005 = 6600 . . . . . . . . . subtract 250, divide by 0.005

Her mom invested $6600 at 3% and 3400 at 2.5%.