Problema Solution
One investment pays 8%and another pays 11%. If equal amounts are invested in each, the combined interest income for 1 year is 712.50. How much is invested at each rate?
Answer provided by our tutors
Let 'x' represent the amount invested at 8%. Since equal amount is invested at 11% we have:
0.08x + 0.11x = 712.50
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click here to see the equation solved for x
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x = $3,750
$3,750 is invested at each rate.