SOLUTION: A man has $800 more invested at 4% than at 3%. If the total interest for the two investments is $130. How much is invested at each rate?

Click here to see ALL problems on Money Word Problems

Question 1038878: A man has $800 more invested at 4% than at 3%. If the total interest for the two investments is $130. How much is invested at each rate?
Answer by jim_thompson5910(35256) (Show Source):
You can put this solution on YOUR website!

x = amount invested at 4%
y = amount invested at 3%

"A man has $800 more invested at 4% than at 3%" so we know that

The amount of interest earned, in one year, for the 4% account is
The amount of interest earned, in one year, for the 3% account is

Put together, the total interest is which is set equal to 130 because this is the total interest for the year.

We have

---------------------------------------

Use the two equations and to solve for x and y. Start by using substitution.

Plug in . Solve for y

Now that we know that , use this to find x.

So we know that and

-------------------------------------

Final Answer:

$2,200 was invested at 4%
$1,400 was invested at 3%