Problema Solution
Phil has $20,000, part of which he invests at 8% interest and the rest at 6%. If his total income from the two investments after one year was $1460, how much did he invest at each rate?
Answer provided by our tutors
simple interest = principal * rate * time
we take time to be equal to 1
let 'x' represent the amount invested at 8%, then '20000-x' represents the amount invested at 6% and we have
1460 = 0.08x + 0.06(20000-x)
solving for 'x' we have x=13000
20000-13000 = 7000
Phil invested $13,000 at 8% and $7,000 at 6%