Problema Solution
The annual interest on a $7,000 investment exceeds the interest earned on a $4,000 investment by $283. The $7,000 is invested at 0.4% higher rate of interest than $4,000. What is the interest rate of each investment?
Answer provided by our tutors
lets assume that
$4,000 is invested at a rate of x or 100*x percentage, where x>=0
$7,000 is invested at a rate of x+0.004 or 100*x + 0.4 percentage
The annual interest on a $7,000 investment exceeds the interest earned on a $4,000 investment by $283:
(x + 0.004)7000 = 4000*x + 283
by solving we find:
x = 0.085 or 8.5%
click here to see the step by step solution of the equation:
$4,000 are invested at a rate of 8.5%.
8.5 + 0.4 = 8.9%
$7,000 are invested at a rate of 8.9%.