Problema Solution
Larry Mitchell invested part of his $20,000 advance at 5% annual simple interest and the rest at 7% annual simple interest. Of his total yearly interest from both accounts was $1,020, find the amount invested at each rate.
Answer provided by our tutors
let 'x' represent the amount invested at 5%, then '20000-x' represents the amount invested at 7%
simple interest = principal * rate * time
we take time to be equal to 1
1020 = 0.05x + 0.07(20000-x)
solving for 'x' we have x=19000
20000-19000 = 1000
Larry invested $19,000 at 5% and $1,000 at 7%