Problema Solution
An executive invests $27,000, some at 8% and some at 4% annual interest. If he receives an annual return of $1,520, how much is invested at each rate?
Answer provided by our tutors
Let
x = the money invested at 8%
y = the money invested at 4%
x + y = 27000
0.08x + 0.04y = 1520
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x = $11,000
y = $16,000
$11,000 were invested at 8%.
$16,000 were invested at 4%.