Question

Jack invests $500 at a certain annual Interest rate, and he invests another $2000 at an annual rate that is one-half percent higher. If he receives a total of $210 Interest in 1 year, at what

rate is the $500 Invested?

Answer 1

8%

Explanation:

So we have two investments. The first is 500 with an interest rate of x while 2000 has an interest rate of x+.005 (.005 is .5 %),

annual interest means it gets interest once a year, it then says in total, after one year, so one time getting interest he gets 210 total, so in total the money is 500 + 2000 + 210. So let's set up an equation with all this

500x + 2000(x+.005) = 2710

500x + 2000x + 10 = 2710

2500x = 2700

x = 1.08

So that means we multiply 500 by 1.08, which represents 8% and 2000 by 1.085. But the question is just asking for the interest rate for 500 so the answer is 8%

If you don't understand how I did anything let me know.