Problema Solution
A merchant has twice as much money invested at 12% as he has at 10%. If his annual from both investements is $84,000 , how much has he invested at each rate?
Answer provided by our tutors
Let
x = represents the money invested at 10%
2x = represents the money invested at 12% (2 times as much as at 10%)
The total annual interest from both investments is $84,000:
0.10x + 0.12*(2x) = 84000
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click here to see the equation solved for x
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x = $247,058.82
2x = 2*247,058.82 = $494,117.64
The merchant invested $247,058.82 at 10% and $494,117.64 at 12%.