Problema Solution

A man invests $5,200, part at 4% and the balance at 3%. If his total income for the two investments is $194, how much money did he invest at each rate?

Answer provided by our tutors

let


x = amount invested at 4%

y = amount invested at 3%


x + y = 5200


y = 5200 - x


Interest = Investment * Rate


194 = 0.04x + 0.03y


194 = 0.04x + 0.03(5,200 - x)


194 = 0.04x + 156 - 0.03x

38 = 0.01x


x = $3,800


y = 5200 - 3800


y = $1,200


$3,800 is invested at 4% and $1,200 is invested at 3%.