Question

Heather has divided $6700 between two investments, one paying 8%, the other paying 5%. If the return on her investment is $428, how much does she have in each investment?

Answer 1

First investment = $3100

Other investment = $3600

Explanation:

Total investment made by Henry = $6700

Let one investment be x,

Then other investment = total investment - first investment = 6700 - x

A) For 8% interest, investment = x

dollar value of 8% investment = 8/100*x= 8x/100

A) For 5% interest, investment = 6700- x

dollar value of 8% investment = 5/100*(6700- x)= 5(6700- x)/100

Total return on both the investment = 8x/100 + 5(6700- x)/100

= (8x +33500 - 5x)/100 = (3x+33500)/100

Given that total return = 428

Therefore,

(3x+33500)/100 = 428

=> 3x+33500 = 428*100 = 42800

=> 3x = 42800- 33500 = 9300

=> x = 9300/3 = 3100

Thus, first investment = x = $3100

other investment = $(6700 - 3100) = $3600