Problema Solution
two investments totaling $47,500 produce an annual income of $3,050. once investment yields 5% a year, while the other yields 10% a year. how much is invested at each rate?
Answer provided by our tutors
let 'x' represent the amount invested at 5%, then '47400-x' represents the amount invested at 10%
interest = principal * rate * time
we assume time is equal to 1
3050 = 0.05x + 0.10(47400-x)
solving for 'x' we have x=33800
47400-33800 = 13600
$13,600 was invested at 10%, $33,800 was invested at 5%