Problema Solution
after one interest period, the interest earned on a ₱7000, investment exceeds the interest earned on a ₱5000 investment by ₱160. the interest rate for the ₱5000 investment is 1.6% greater than the interest rate for the ₱7000 investment. Find the interest rate for two investment.
Answer provided by our tutors
let
r = the interest rate for the 7,000 investment
r + 0.016 = the interest rate for the 5,000 investment (the interest rate for the ₱5000 investment is 1.6% greater than the interest rate for the ₱7000 investment)
the interest earned on a ₱7000, investment exceeds the interest earned on a ₱5000 investment by ₱160
r*7000 = (r + 0.016)5000 + 160
by solving we find
r = 0.12 or 12%
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r + 0.016 = 0.12 + 0.016 = 0.136 or 13.6%
the interest rate for the 7,000 investment is 12%.
the interest rate for the 5,000 investment is 13.6%.