Question

A total of $500 was invested, part of it at 7 percent interest and the remainder at 8 percent .If the total yearly interest from both investments amounted to $38 ,how much was invested at 8 percent rate?

Answer 1

$300 was invested at 8% rate

Explanation:

Given that

Total investment = $ 500

Let $x be invested at 7% and (500-x ) was invested at 8%

∴ The total interest after 1 year =$
`[(x* 7*1)/(100) +((500-x)*8* 1)/(100)]`

According to problem,

`[(x* 7*1)/(100) +((500-x)*8* 1)/(100)]` = 38

⇔7x +4000 - 8x = 38×100

⇔ -x = 3800 - 4000

⇔x = $ 200

Therefore $(500-200)= $300 was invested at 8% rate