# SOLUTION: Dave Salcedo has \$40,000 to invest. He invests part of it at 5%, one-fourth of this amount at 6%, and the rest of the money at 7%. His total annual interest income is \$2530. Fin

Algebra ->  Algebra  -> Customizable Word Problem Solvers  -> Finance -> SOLUTION: Dave Salcedo has \$40,000 to invest. He invests part of it at 5%, one-fourth of this amount at 6%, and the rest of the money at 7%. His total annual interest income is \$2530. Fin      Log On

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 Click here to see ALL problems on Money Word Problems Question 185848: Dave Salcedo has \$40,000 to invest. He invests part of it at 5%, one-fourth of this amount at 6%, and the rest of the money at 7%. His total annual interest income is \$2530. Find the amount invested at each rate. Answer by ankor@dixie-net.com(15646)   (Show Source): You can put this solution on YOUR website!Dave Salcedo has \$40,000 to invest. He invests part of it at 5%, one-fourth of this amount at 6%, and the rest of the money at 7%. His total annual interest income is \$2530. Find the amount invested at each rate. : We have 3 amts let x = amt invested at 5% then .25x = amt invested at 6% and (40000-1.25x) = amt invested at 7% : .05x + .06(.25x) + .07(40000-1.25x) = 2530 : .05x + .015x + 2800 - .0875x = 2530 : .05x + .015x - .0875x = 2530 - 2800 : -.0225x = -270 x = x = \$12000 invested at 5% : .25(12000) = \$3000 invested at 6% and 40000 - 12000 - 3000 = \$25000 invested at 7% : ; Check solution by finding the total interest .05(12000) + .06(3000) + .07(25000) = 600 + 180 + 1750 = 2530, confirms out solutions