SOLUTION: The annual interest on an $20,000 investment exceeds the interest earned on an $11,000 investment by $780. The $20,000 is invested at a 0.3% higher rate of interest than the $11,0

Algebra ->  Finance -> SOLUTION: The annual interest on an $20,000 investment exceeds the interest earned on an $11,000 investment by $780. The $20,000 is invested at a 0.3% higher rate of interest than the $11,0      Log On


   

Question 1165172: The annual interest on an $20,000 investment exceeds the interest earned on an $11,000 investment by $780. The $20,000 is invested at a 0.3% higher rate of interest than the $11,000. What is the interest rate of each investment?
Answer by ikleyn(52858) About Me  (Show Source):
You can put this solution on YOUR website!
.

Let "r" be the lower interest rate (as a decimal);

then the higher interest rate is (r + 0.003).


From the condition, you have this equation 


    20000*(r + 0.003) - 11000*r = 780   dollars.


Solve it and find "r".  Then evaluate  (r+0.003).