SOLUTION: Tim Bell invests some money at 5% and $1500 more than this amount at 8%. The total annual income from the investments is $536. Find the amount invested at 5%.
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-> SOLUTION: Tim Bell invests some money at 5% and $1500 more than this amount at 8%. The total annual income from the investments is $536. Find the amount invested at 5%.
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Question 1184522: Tim Bell invests some money at 5% and $1500 more than this amount at 8%. The total annual income from the investments is $536. Find the amount invested at 5%. Answer by ikleyn(52787) (Show Source):
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Tim Bell invests some money at 5% and $1500 more than this amount at 8%.
The total annual income from the investments is $536. Find the amount invested at 5%.
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0.05x + 0.08*(x+1500) = 536
0.05x + 0.08x + 0.08*1500 = 536
0.05x + 0.08x = 536 - 0.08*1500
0.13x = 416
x = = 3200.
ANSWER. The amount invested at 5% was $3200.
CHECK. 0.05*3200 + 0.08*(3200+1500) = 536 dollars, total annual interest. ! Correct !
Solved.
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It is a standard and typical problem on investments.
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).
