Problema Solution
Larry michell invested part of his $35000 advance at 8 percent and the rest at 7 percent annual simple interest. If his total yearly interest from both accounts was $2630, find the amount invested at each rate
Answer provided by our tutors
let
p1 = the money invested at r1 = 0.08 or 8%
p2 = the money invested at r2 = 0.07 or 7%
t = 1 year
the total money invested is $35000
p1 + p2 = 35000
the total yearly interest from both accounts is $2630
p1*r1*t + p2*r2*t = 2630
p1*0.08*1 + p2*0.07*1 = 2630
0.08p1 + 0.07p2 = 2630
by solving the system of equations
p1 + p2 = 35000
0.08p1 + 0.07p2 = 2630
we find
p1 = $18,000
p2 = $17,000
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there were $18,000 invested at 8% and $17,000 invested at 7%.