Problema Solution
A women invests $37,000 part at 8% and the rest at 9.5% annual interest. If the 9.5% investment provides $452.50 more income than the 8% investment, how much is invested a each rate?
Answer provided by our tutors
X = amount invested at 8%
Y = amount invested at 9%
X + Y = 37000
Income from 8% investment = 0.08*X
Income from 9% investment = 0.09*Y
0.09*Y = 0.08*X + 452.50
We have simultaneous equations for X and Y. Divide above equation by 0.08 to give
1.125*Y - X = 5656.25
Add to X+Y = 37000 to get equation for Y:
2.25*Y = 42656.25
Therefore Y = $18 958.33
X = 18041.67
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