Question

On two investments totaling $6,500, Lydia lost 7% on one and earned 8% on the other. If her net annual receipts were $364, how much was each investment?

Answer 1

$3,442.40

$3,057.60

Explanation:

The computation of the each investment is as follows:

let us assume the one investment be x

And, the other investment be y

So

According to the question

x + y = $6,500

And,

-7x + 8y = $364

Now multiply by 7 in equation 1

7x + 7y = $45,500

-7x + 8y = $364

15y = $45,864

y = $3,057.60

x = $6,500 - $3,0657.60

= $3,442.40