SOLUTION: The annual interest on an $11,000 investment exceeds the interest earned on an $8000 investment by $347. The $11,000 is invested at a 0.7% higher rate of interest than the $8000.

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Question 1139627: The annual interest on an $11,000 investment exceeds the interest earned on an $8000 investment by $347. The $11,000 is invested at a 0.7% higher rate of interest than the $8000. What is the interest rate of each investment?

Answer by greenestamps(13198) About Me  (Show Source):
You can put this solution on YOUR website!


Let x be the interest rate (decimal) on the $8000 investment. Then the interest rate on the $11,000 investment is x+.007. Then the information given is that

11000%28x%2B.007%29+=+8000%28x%29%2B347

Solve using basic algebra (or a graphing calculator).