Question

Two investments totaling $15,500 produce an annual income of $1450. One investment yields 10% per year, while the other yields 5% per year. How much is invested at each rate?

Answer 1

Answer:10% rate:

Principal = p

Rate = 0.10

Interest = 0.10p

5% rate:

Principal = 15500 - p

Rate = 0.05

Interest = 0.05(15500 - p) = 775 - 0.05p

0.10p + (775 - 0.05p) = 1450

0.05p + 775 = 1450

0.05p = 675

p = 13500

10% rate:

Principal = p = $13,500

5% rate:

Principal = 15500 - p = 15500 - 13500 = $2000

Explanation:

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