Problema Solution
Larry Mitchell invested part of his %42,000 advance at 9% annual simple interest and the rest at 8% annual simple interest. If his total yearly interest from both accounts was $36,670, find the amount invested at each rate.
Answer provided by our tutors
let
x = the money invested at 9% annual simple interest
y = the money invested at 8% annual simple interest
Larry Mitchell invested $420,000:
x + y = 420,000
his total yearly interest from both accounts was $36,670:
0.09x + 0.08y = 36670
by solving the system of equations:
x + y = 420000
0.09x + 0.08y = 36670
we find:
x = $307,000
y = $113,000
click here to see the step by step solution of the system of equations:
$307,000 were invested at 9% annual simple interest.
$113,000 were invested at 8% annual simple interest.