Problema Solution
a merchant has twice as much money invested at .12 annual interest rate as he has at .1.after a year,he earned php84000 from his investments.how much has he invested at each rate?
Answer provided by our tutors
I1 = P1 0.12 * 1
I2 = P2 * 0.1 * 1
but we are given,
I1 = 2 *I2
P1 0.12 * 1 =2* P2 * 0.1 * 1
and we get
2*P2 * 0.1 * 1 + P2 * 0.1 * 1 = 84000
3P2 * 0.1 = 84000
P2 = 84000/0.3 = 280,000 is invested with 0.1 rate
P1 = P2 * 0.2 / 0.12 = 466,666.7 is invested with 0.12 rate