SOLUTION: Willard invests a part of 50 000 pesos in a bank paying 12% interest annually and the rest in a loan association paying 15% interest annually. If his total income from the two inve

Question 904904: Willard invests a part of 50 000 pesos in a bank paying 12% interest annually and the rest in a loan association paying 15% interest annually. If his total income from the two investments for one year is 6, 540, how much does he invest at each rate?
Answer by richwmiller(17219) (Show Source): You can put this solution on YOUR website!
Total amount of money invested: $50000
x+y=50000,
Total yearly interest for the two accounts is: $6540
0.12*x+0.15*y=6540
x=50000-y
Substitute for x
0.12*(50000-y)+0.15*y=6540
Multiply out
6000-0.12y+0.15*y=6540
Combine like terms.
0.03*y=540
Isolate y
y=$18000.00 at 15%
x=50000-y
Calculate x
x=$32000.00 at 12%
Check
0.12*32000+0.15*18000=6540
3840+2700=6540
6540=6540
If this statement is TRUE and neither amount is negative then all is well

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