Question

An executive invests $26,000, some at 7% and some at 5% annual interest. If he receives an annual return of $1580, how much is invested at each rate?

Answer 1

He invest $14000 for 7% and $12000 for 5%.

Explanation:

Consider the provided information.

Let executive invest x for 7% and 26000-x for 5%.

The annual return is $1580.

Therefore, the required equation is:

`(7)/(100) x+(5)/(100)(26000-x)=1580`

`0.07x+0.05(26000-x)=1580`

`0.07x+1300-0.05x=1580`

`0.02x=280`

`x=14000`

26000-14000=12000

Therefore, he invest $14000 for 7% and $12000 for 5%.