document.write( "Question 1137064: An executive invests $25,000, some at 6% and the rest at 5% annual interest. If he receives an annual return of $1,440, how much is invested at each rate? \n" ); document.write( "

Algebra.Com's Answer #755006 by greenestamps(13200) $\"\"$ $\"About$

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\n" ); document.write( "Here is a COMPLETELY different method for solving a problem like this. It is essentially a mixture problem -- you are mixing investments at two different rates and getting a yield that is somewhere between those two rates.

\n" ); document.write( "The key to this method of solving mixture problems is that the ratio in which the two parts are mixed exactly determines where the overall percentage lies.

\n" ); document.write( "Here are all the simple steps required to solve the problem by this method:

\n" ); document.write( "(1) Find what the returns would be if all the money were invested at each rate:
\n" ); document.write( "$25,000 at 5% yields $1250; $25,000 at 6% yields $1500.

\n" ); document.write( "(2) Find where the actual yield lies between those two extremes:
\n" ); document.write( "1500-1250 = 250; 1440-1250 = 190; 190/250 = 19/25
\n" ); document.write( "The actual yield is 19/25 of the way from $1250 to $1500.

\n" ); document.write( "(3) That means 19/25 of the total is invested at the higher rate:
\n" ); document.write( "ANSWER: (19/25)*$25,000 = $19,000 at 6%; the rest, $6,000, at 5%. \n" ); document.write( "

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