SOLUTION: jane invests part of her $4000 savings into a savings account at 2.5% and part into a GIC at 4% simple interest. If she earns 148.00$ in interest from her two invest
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-> SOLUTION: jane invests part of her $4000 savings into a savings account at 2.5% and part into a GIC at 4% simple interest. If she earns 148.00$ in interest from her two invest
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Question 1171861: jane invests part of her $4000 savings into a savings account at 2.5% and part into a GIC at 4% simple interest. If she earns 148.00$ in interest from her two investments, calculate how much she invested at each rate. Answer by ikleyn(52788) (Show Source):
Let x be the amount invested at 4% (in dollars).
Then the rest (4000-x) dollars are invested at 2.5%.
Then you write the total annual simple interest equation
0.04*x + 0.025*(4000-x) = 148 dollars.
From the equation
x = = 3200 dollars.
Answer. $3200 invested at 4% and the rest (4000-3200) = 800 dollars are invested at 2.5%.
CHECK. 0.04*3200 + 0.025*800 = 148 dollars, total annual interest. ! Precisely correct !
Solved.
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It is a standard and typical problem on investments.
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).
