SOLUTION: The annual interest on a $14,000 investment exceeds the interest earned on a $7000 investment by $595. The $14,000 is invested at a 0.5% higher rate of interest than the $7000. W

Algebra ->  Finance -> SOLUTION: The annual interest on a $14,000 investment exceeds the interest earned on a $7000 investment by $595. The $14,000 is invested at a 0.5% higher rate of interest than the $7000. W      Log On


   

Question 1153886: The annual interest on a $14,000 investment exceeds the interest earned on a $7000 investment by $595. The $14,000 is invested at a 0.5% higher rate of interest than the $7000. What is the interest rate of each investment?
Answer by ikleyn(52775) About Me  (Show Source):
You can put this solution on YOUR website!
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Let x be the lover rate, as the decimal value; then the higher rate is (x+0.005).


The basic equation is then


    (x+0.005)*14000 -x*7000 = 595  dollars.


Express x and calculate


    x = %28595-0.005%2A14000%29%2F%2814000-7000%29 = 0.075.


ANSWER.  7.5% for $7000 and 8.0% for $14000.


CHECK.  0.08*14000 - 0.075*7000 = 595 dollars.   ! Precisely correct !