Problema Solution
Phyllis invested $8,500, a portion earning a simple interest rate of 2
1/4% per year and the rest earning a rate of 2% per year. After 1 year the total interest earned on these investments was $188.75. How much money did she invest at each rate?
Answer provided by our tutors
let 'x' represent the amount invested at 2.25%, then '8500-x' represents the amount invested at 2%
interest = principal * rate * time
we take time to be equal to 1
188.75 = 0.0225x + 0.02(8500-x)
solving for 'x' we have x=7500
8500-7500 = 1000
Phyllis invested $7,500 at 2.25% and $1,000 at 2%