Problema Solution

part of $13750 is invested at 9% annual interest and the rest is invested at 8%. After one year the accounts paid $1185 in interest. how much was invested at the lower rate?

Answer provided by our tutors

let


x = the money invested at 9% annual interest


y = the money invested at 8% annual interest


part of $13750 is invested at 9% annual interest and the rest is invested at 8%


x + y = 13750


After one year the accounts paid $1185 in interest


0.09x + 0.08y = 1185


by solving the system of equations:


x + y = 13750


0.09x + 0.08y = 1185


we find:


x = $8,500


y = $5,250


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he invested $5,250 at the lower rate.