Problema Solution

A financial consultant invests $6,000 at a certain rate and $8,000 at a rate that is 1% less than twice the rate at $6,000.If the total income from both investments is $1,240.00, find the rate of each investment.

Answer provided by our tutors

let


r = the rate of the $6,000 investment in decimals


2r - 0.01 = the rate of the $8,000 investment in decimals


the total income from both investments is $1,240.00:


6000r + 8000(2r - 0.01) = 1240


by solving we find:


r = 0.06 or 6%


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2r - 0.01 = 2*0.06 - 0.01 = 0.11 or 11%


the $6,000 were invested at 6%.


the $8,000 were invested at 11%.