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%.