SOLUTION: An executive invests $27,000, some at 7% and the rest at 5% annual interest. If he receives an annual return of $1,710, how much is invested at each rate?
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Question 1099466: An executive invests $27,000, some at 7% and the rest at 5% annual interest. If he receives an annual return of $1,710, how much is invested at each rate? Answer by ikleyn(52847) (Show Source):
Let x be the amount invested at 7% (in dollars).
Then the amount invested at 5% is (27000-x) dollars.
Then the equation for the "earned interest" is
0.07x + 0.05(27000-x) = 1710. (<<<---=== earning from two investments)
It is your basic equation.
As soon as you got it, the setup is done.
To solve the equation, multiply both sides by 100. You will get
7x + 5*(27000-x) = 171000 ====>
7x + 135000 - 5x = 171000 ====> 2x = 171000-135000 = 36000 ====> x = = 18000.
Answer. $18000 invested at 7%, the rest 27000-18000 = 9000 was invested at 5%.
Check. 0.07*18000 + 0.05*9000 = 1710. ! Correct !
