Problema Solution

a portion of 7200 is invested at 5 1/2 percent interest, and the rest is invested at 5 percent interest. if the yearly income from the money is rs. 387 how much is invested at each rate ?

Answer provided by our tutors

Let 'x' be the amount invested at 5 1/2 = 5.5% and 'y' the amount invested at 5%.

x + y = 7200

0.055x + 0.05y = 387

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click here to see the system of equations solved for x and y

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x = $5,400

y = $1,800

$5,400 were invested at 5.5% and $1,800 were invested at 5%.