SOLUTION: I have no idea where to start on this word problem: COPORATE INVESTMENTS: The financial board of a corporation invested $25,000 overseas, part at 4% and part at 7% annual inter

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: I have no idea where to start on this word problem: COPORATE INVESTMENTS: The financial board of a corporation invested $25,000 overseas, part at 4% and part at 7% annual inter      Log On


   

Question 367143: I have no idea where to start on this word problem:
COPORATE INVESTMENTS: The financial board of a corporation invested $25,000 overseas, part at 4% and part at 7% annual interest. Find the amount invested at each rate if the first year combined income from the two investments was $1,300.
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!


Hi,

Start all word problems like these by assigning a variable 

for ex: Let x represent the amount invested at 7%, 

then ($25,000 - x) would the smount invested at 4%

question states:

.04($25,000-x) + .07x = $1300

.03x + $1000 = $1300

.03x = $300

x = $10,000, amount invested at 7%.  $15,000 invested at 4%  ($25,000-$10,000)

checking our answer

.04*$15,000 + .07*$10,000 = $600 + $700 = $1300