Problema Solution

A banker invested a portion of $10,000 at 5% interest per year and the remainder at 4% interest per year if the banker received $470 in interest after one year how much was invested at each rate?

Answer provided by our tutors

Let


x = amount he invested at 5%,

10,000-x = amount invested at 4%

So we have:

0.05x + 0.04(10000-x) = 470

........

click here to see the equation solved for x

........

x = $7,000

10,000 - 7,000 = $3,000

$7,000 was invested at 5% and $3,000 was invested at 4%.