SOLUTION: you receive an inheritance of $20,000 and decide to split it into two parts to invest. One part was invested at 6% interest and the rest at 8% interest. Find the amount invested at

Question 911732: you receive an inheritance of $20,000 and decide to split it into two parts to invest. One part was invested at 6% interest and the rest at 8% interest. Find the amount invested at each rate if the annual income from the two investments is $1,500.
Answer by richwmiller(17219) (Show Source): You can put this solution on YOUR website!
Total amount of money invested: $20000
x+y=20000,
Total yearly interest for the two accounts is: $1500
0.06*x+0.08*y=1500
x=20000-y
Substitute for x
0.06*(20000-y)+0.08*y=1500
Multiply out
1200-0.06*y+0.08*y=1500
Combine like terms.
0.02*y=300
Isolate y
y=$ 15000.00 at 8% earns $1200 interest
x=20000-y
Calculate x
x=$ 5000.00 at 6% earns $300 interest
Check
0.06*5000+0.08*15000=1500
300+1200=1500
1500=1500
If this statement is TRUE and neither x nor y is negative then all is well
codeint1

RELATED QUESTIONS
A total of $34000 was invested in two parts, one part at an interest of 20% and the other (answered by checkley71)

Problem 1 Separate 102 into two parts such that the larger part divided by the smaller... (answered by josgarithmetic)

Lenny received an inheritance. He invested part of it at 8% and six times that amount at... (answered by ReadingBoosters)

To Whomever can assist... Thanks! Nina received an inheritance of $12,000 from her... (answered by rcmcc)

You receive a $165,000 inheritance from your parents and invest it in a savings plan... (answered by Theo)

Suppose that your long lost relative recently left you an inheritance of $300,000. You... (answered by Theo)

An inheritance of $15,000 is to be split and invested at 6% and 9% interest to produce an (answered by richwmiller)

An investment of $130 comma 000 was made by a business club. The investment was split... (answered by ankor@dixie-net.com)

Diana invested part of a 10,000 inheritance in stocks paying 6.5% simple interest... (answered by ikleyn)