SOLUTION: An investment club used funds totaling $300,000 to invest in a bio-tech company and in an ethanol plant, with hopes of earning 12% and 15% annual simple interest, respectively. The

Algebra ->  Customizable Word Problem Solvers  -> Misc -> SOLUTION: An investment club used funds totaling $300,000 to invest in a bio-tech company and in an ethanol plant, with hopes of earning 12% and 15% annual simple interest, respectively. The      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1092416: An investment club used funds totaling $300,000 to invest in a bio-tech company and in an ethanol plant, with hopes of earning 12% and 15% annual simple interest, respectively. Their hunch paid off. The club made a total of $38,400 interest the first year. How much was invested at each rate?
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
Let +x+ = amount invested @ 12%
+300000+-+x+ = amount invested @ 15%
----------------------------------------
+.12x+%2B+.15%2A%28+300000+-+x+%29+=+38400+
----------------------------------------
+.12x+%2B+45000+-+.15x+=+38400+
+.03x+=+45000+-+38400+
+.03x+=+6600+
+x+=+220000+
and
+300000+-+x+=+300000+-+220000+
+300000+-+x+=+80000+
-------------------------------------
The amount invested @ 12% is $220, 000
The amount invested @ 15% is $80,000
-----------------
check the math