SOLUTION: An executive invests $27,000, some at 7% and the rest at 5% annual interest. If he receives an annual return of $1,710, how much is invested at each rate?

Question 1099466: An executive invests $27,000, some at 7% and the rest at 5% annual interest. If he receives an annual return of $1,710, how much is invested at each rate?
Answer by ikleyn(52848) (Show Source): You can put this solution on YOUR website!
.

Let x be the amount invested at 7% (in dollars).

Then the amount invested at 5% is (27000-x) dollars.


Then the equation for the "earned interest" is

0.07x + 0.05(27000-x) = 1710.     (<<<---===  earning from two investments)


It is your basic equation.
As soon as you got it, the setup is done.


To solve the equation, multiply both sides by 100. You will get

7x + 5*(27000-x) = 171000  ====>  

7x + 135000 - 5x = 171000  ====>  2x = 171000-135000 = 36000  ====>  x =  = 18000.


Answer. $18000 invested at 7%,  the rest 27000-18000 = 9000 was invested at 5%.


Check.  0.07*18000 + 0.05*9000 = 1710.   ! Correct !

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To see more similar solved problems on investments, look into the lessons
- Using systems of equations to solve problems on investment
in this site.

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