Problema Solution

John Walker made and extra $8000 last year by selling toys he hand made, He invested part of the money at 14% and the rest at 12%. His total annual income from interest was $1060. How much was invested at each rate?

Answer provided by our tutors

let


x = the money invested at 14%

y = the money invested at 12%


x + y = 8000


0.14x + 0.12y = 1060


by solving the system of equations we find


x = $5,000


y = $3,000


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John Walker invested $5,000 at 14% and $3,000 at 12%.