SOLUTION: An executive invests $25,000, some at 8% and the rest at 6% annual interest. If he receives an annual return of $1,780, how much is invested at each rate?

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Question 1121631: An executive invests $25,000, some at 8% and the rest at 6% annual interest. If he receives an annual return of $1,780, how much is invested at each rate?
Answer by ikleyn(52781)   (Show Source): You can put this solution on YOUR website!
.
Let x be an amount invested at  8%, in dollars.


Then the amount invested at  6%  was  (25000-x)  dollars.


Your equation is


    interest + interest       = total interest


    0.08*x   + 0.06*(25000-x) = 1780   dollars.


Simplify and solve for x:


    0.08x + 0.06*25000 - 0.06x = 1780


    0.02x = 1780 - 0.06*2500 = 280  ====>  x =  = 14000.


Answer.  $14000 was invested at 8%.  The rest  $25000 - $14000 = $11000 was invested at 6%.


Check.   0.08*14000 + 0.06*11000 = 1780 dollars.    ! Correct !

Solved.

----------------

It is a typical and standard problem on investment.

To see many other similar solved problems on investment,  look into the lesson
    - Using systems of equations to solve problems on investment
in this site.

You will find there different approaches  (using one equation or a system of two equations in two unknowns),  as well as
different methods of solution to the equations  (Substitution,  Elimination).

Also,  you have this free of charge online textbook in ALGEBRA-I in this site
    - ALGEBRA-I - YOUR ONLINE TEXTBOOK.

The referred lesson is the part of this online textbook under the topic  "Systems of two linear equations in two unknowns".


Save the link to this online textbook together with its description

Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson

to your archive and use it when it is needed.


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