SOLUTION: Jerry invested $10,000, part at 8% simple interest and the rest at 5% simple interest for a period of 1 year. If he received a total annual interest of $575 from both investments,
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Question 1112898: Jerry invested $10,000, part at 8% simple interest and the rest at 5% simple interest for a period of 1 year. If he received a total annual interest of $575 from both investments, how much did he invest at each rate? Answer by ikleyn(52775) (Show Source):
Let x = an amount invested at 8%.
Then the amount invested at 5% is the rest (10000-x) dollars.
Your equation is
0.08*x + 0.05*(10000-x) = 575.
0.08x + 500 - 0.05x = 575
0.03x = 575 - 500 = 75 ====> x = = = 2500.
Answer. $2500 invested at 8%; the rest $7500 invested at 5%.
Solved.
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It is a typical and standard problem on investment.
You will find there different approaches (using one equation or a system of two equations in two unknowns), as well as
different methods of solution to the equations (Substitution, Elimination).
