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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