Problema Solution

Piotr invested some money at 3.5% simple interest, and $5000 more than three times this amount at 4%. He earned $1440 in annual interest. How much did he invest at each rate?

Answer provided by our tutors

Let

x = the money invested at 3.5% simple interest

3x + 5000 = the money invested at 4% simple interest

He earned $1440 in annual interest:

0.035*x + 0.04*(3x + 5000) = 1440

........

click here to see the equation solved for x

........

x = $8,000

3x + 5000 = 3*8000 + 5000 = $29,000

Piotr invested $8,000 at 3.5% and $29,000 at 4%.