Problema Solution

A man has 45,000 invested part at 2% and the remainder at 3% simple interest. How much is invested at each if the total annual income is 1,100

Answer provided by our tutors

Let

x = the money invested at 2% simple interest

45,000 - x = the money invested at 3% simple interest

0.02x + 0.03(45,000 - x) = 1,100

........

click here to see the equation solved for x

........

x = $25,000

45,000 - 25,000 = $20,000

$25,000 was invested at 2% and $20,000 was invested at 3% simple interest.