Question

millicent earned $435 last year in interest. If $3000 was invested at a certain rate of return and $4500 was invested in a fund with a rate that was %2 lower, find the 2 rates of interest

Answer 1

7% and 5%

Explanation:

The computation of the two rates of interest is shown below;

The interest rate for $3,000 be x%

And, for $4,500 the interest rate is (x -2%)

The total interest earned is

= x% of $4,500 + (x - 2)% of $4,500

So, the two rates of interest is

x% of $4,500 + (x - 2)% of $4,500 = $435

30x + 45(x - 2) = $435

30x + 45x - 90 = $43

75x = $25

x = 7%

x - 2 = 7 - 2

= 5%