Question

April invests $30,000, part at 6.5% annual interest and the balance at 4.2% annual interest. How much is invested at each rate if April receives a 1-year interest payment of $1662.50?

Answer 1

yes

Explanation:

Answer 2

• $17500 at 6.5% and $12500 at 4.2%

Explanation:

Given

• Let x be the amount invested at 6.5%
• Then (30000 - x) is invested at 4.2%

The equation for the interest:

• x*6.5/100 + (30000 - x)*4.2/100 = 1662.50
• 0.065x + 1260 - 0.042x = 1662.50
• 0.023x = 1662.50 - 1260
• 0.023x = 402.5
• x = 402.5/0.023
• x = 17500

So $17500 invested at 6.5% and $12500 at 4.2%