Problema Solution
Jack invests $500 at a certain annual interest rate, and he invests another $1000 at an annual rate that is one-half percent higher. If he receives a total of $110 interest in 1 year, at what rate is the $500 invested?
Answer provided by our tutors
let 'x' represent the lower interest rate, then 'x+0.005' represents the higher interest rate
interest = principal * rate * time
we take time to be equal to 1
110 = 500x + 1000(x+0.005)
solving for 'x' we have x=0.07
the lower interest rate was 7%