Problema Solution

Jack invests $1000 at a certain annual interest rate, and he invest another $2000 at an annual rate that is one half percent higher. If he receives a total of $190 interest in 1 year, at what rate is the $1000 invested?

Answer provided by our tutors

Let


r = the rate at which the $1000 are invested (as a decimal)


r + 0.5/100 = the rate at which the $2000 are invested at (as a decimal)


r*1000 + (r + 0.5/100)*2000 = 190

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r = 0.06 or 6%


The rate is 6%.