Problema Solution

Jo invested part of her $8000 at 12% and part at 8%. If the annual investment income is $825, how much was invested at each rate?

Answer provided by our tutors

let


x = the money invested at 12%

y = the money invested at 8%


x + y = 8000


the annual investment income is $825


0.12x + 0.08y = 825


by solving the system of equations


x + y = 8000

0.12x + 0.08y = 825


we find


x = $4,625


y = $3,375


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Jo invested $4,625 at 12% and $3,375 at 8%.