SOLUTION: After one interst period the interest earned pn a 7000 investment exceeds the interest earned on 5000 by 160. The interest rate for 5000 investment is greater than by 1.6% to the 7
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Question 1002299: After one interst period the interest earned pn a 7000 investment exceeds the interest earned on 5000 by 160. The interest rate for 5000 investment is greater than by 1.6% to the 7000 investment. Find the rates for the two investments
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
rate = percent / 100.
percent = rate * 100.
1.6% divided by 100 = .016
let x = the interest rate for the 7000 investment.
then x + .016 = the interest rate for the 5000 investment.
your statement is:
After one interest period, the interest earned on a 7000 investment exceeds the interest earned on a 5000 investment by 160.
The interest rate for the 5000 investment is greater than the interest rate for the 7000 investment by 1.6%.
Find the rates for the two investments
the above statements translate to:
x * 7000 - (x + .016) * 5000 = 160
simplify this to get:
x * 7000 - (x * 5000) - (.016 * 5000) = 160
simplify further and combine like terms to get:
x * 2000 - 80 = 160
add 80 to both sides of the equation to get:
x * 2000 = 240
divide both sides of the equation by 2000 to get:
x = .12
the interest rate on the 7000 investment is .12
the interest rate on the 5000 investment is .136
.12 * 7000 - .136 * 5000 = 160 becomes:
160 = 160
this confirms the solution is correct.
the solution is:
the rate for the 7000 investment is 12%.
the rate for the 5000 investment is 13.6%.
rate = percent divided by 100
percent = rate * 100
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