Problema Solution
a total of $25000 is invested in two accounts, one pays 7.5% interest and another pays 11% interest. Mr. garrett wants to earn an annual interest income of $2000 from his investments. How much should be invested at each rate?
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let
x = the money invested at the account that pays 7.5% simple interest
y = the money invested at the account that pays 11% simple interest
a total of $25000 is invested in two accounts
x + y = 25000
Mr. Garrett wants to earn an annual interest income of $2000 from his investments
0.075x + 0.11y = 2000
by solving the system of equations
x + y = 25000
0.075x + 0.11y = 2000
we find
x = $21,428.57
y = $3,571.43
click here to see the step by step solution of the system of equations
$21,428.57 should be invested at 7.5% interest.
$3,571.43 should be invested at 11% interest.