Problema Solution

Nico is saving money for his college education. He invests some money at 8% and $1200 less than that amount at 7%. The investments produced a total $231 interest in 1 year. How much did he invest at each rate?

Answer provided by our tutors

8%--------------- x

5% x-1200 

Interest = 174 

8%x+(x-1200)*5%= 174 

multiply equation by 100 

8x+5(x-1200)= 17400 

8x+5x-6000=17400 

13x= 17400+6000 

13x= 23400 

x=1800 

Investment @ 8% = $1800

Investment at 5% = 1800-1200 = 600