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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