Problema Solution
Paul and Donna invest $12,000, part at 5% simple interest and the rest at 7% simple interest for a period of 1 year. How much money did they invest at each rate it their total annual interest from both investments was $800? (I=prt)
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Paul and Donna invest $12,000, part at 5% simple interest and the rest at 7% simple interest for a period of 1 year. How much money did they invest at each rate it their total annual interest from both investments was $800? (I=prt)
Let x , y be the amount of investemnts made by Paul and Donna.
x+y=12000.
0.05x+0.07y=800.
0.05x+0.07(12000-x)=800.
0.05x+840-0.07x=800.
0.02x=40.
x=40/0.02
=2000.
y=12000*2000
=10000.