Question

A total of $5900 is invested, part at 11% simple interest and part at 7%. If the total annual return from the two investments is $ 537.00, how much is invested at each rate?

How much was invested at 11% ? $____

Answer 1

Explanation:

y = 5900 - x

Simple interest = Prt

Simple interest on $x = x * 0.11 * 1 = 0.11x

Simple interest on $ (5900 - x) = (5900 - x) * 0.07 * 1

= (5900 - x) * 0.07

= 5900 * 0.07 - x * 0.07

= 413 - 0.07x

Return from tow investment = $ 537

0.11x + 413 - 0.07x = 537

Add the like terms

0.04x + 413 = 537

Subtract 413 for both sides

0.04x = 537 - 413

0.04x = 124

x = 124 /0.04

x = 3100

y = 5900 - 3100 = 2800

x = $ 3100

y = $ 2800