SOLUTION: George decided to invest a certain amount of money, some at an annual interest rate of 5% and the remainder at an annual interest Rate Of 8%. The ratio of the amount of money inv

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Question 1191856: George decided to invest a certain amount of money, some at an
annual interest rate of 5% and the remainder at an annual interest
Rate Of 8%. The ratio of the amount of money invested at 5% to the
amount invested at 8% was 3:5. In one year, he earned $200 more
From this investment than if he had invested all the money in a fund
earning 6 1/4% per year. How much would his income from the
investment have been if he had invested all the money in a fund
earning 10% per year? Please explain how to do this.
Answer by greenestamps(13196) (Show Source):
You can put this solution on YOUR website!

Given the ratio 3:5 for the amounts invested at 5% and 8%, respectively...

let 3x = amount invested at 5%
let 5x = amount invested at 8%

The total amount invested was 3x+5x=8x.

The earnings from this investment were 5% of 3x and 8% of 5x.

If he had invested the whole amount at 6.25%, the earnings would have been 6.25% of 8x.

The first investment earned $200 more than the second would have:

The total invested was 8x = $32000.

His earnings from this investment were

(note that problem does not ask for that....)

If he had invested the whole $32000 at 10%, his earnings would have been

= $3200.

ANSWER: $3200