30.9k views
5 votes
Patricia has $34,000 to invest. She invests some at 17% and the balance at 20%. Her total annual interest income is $6245. Find the amount invested at each rate

1 Answer

4 votes

Answer:

she invest $18,500 at the 17% rate and $15,500 at the 20% rate.

Explanation:

Suppose that you invest some quantity A to an invest rate of x%

At the end, the amount you will have is given by:

Amount = A + A*(x%/100%)

Where:

A*(x%/100%) is the interest income

So, here she initially has $34,000

And she invest some quantity X to a 17% and a quantity Y to 20%

Then we have:

X + Y = $34,000

And we know that her total anual income is $6245

X*(17%/100%) + Y*(20%/100%) = $6245

Then we have a system of two equations:

X + Y = $34,000

X*(17%/100%) + Y*(20%/100%) = $6245

First we can rewrite the second one to a more simpler form:

X*(0.17) + Y*(0.20) = $6245

Now we can isolate one of the variables in the first equation to get:

X = $34,000 - Y

Now we can replace that in the other equation to get:

( $34,000 - Y)*0.17 + Y*0.20 = $6245

Now we can solve this for Y:

$34,000*0.17 + Y*(0.20 - 0.17) = $6245

$5,780+ Y*0.03 = $6245

Y*0.03 = $6245 - $5,780 = $465

Y = $465/0.03 = $15,500

And X = $34,000 - Y = $34,000 - $15,500 = $18,500

So she invest $18,500 at the 17% rate and $15,500 at the 20% rate.

User Udexter
by
3.8k points