Question 1192991: A corporation gave a university $300,000.00 to support product safety research. The
university deposited part of it in a 10% simple interest account and the remainder in
corporate bonds that earn 8.5% interest. If the annual interest is $28,500.00, how much is
invested in each account?
Answer by greenestamps(13203)   (Show Source):
You can put this solution on YOUR website!
A setup for solving using formal algebra....
10% of some amount x, plus 8.5% of the amount (300,000-x), equals 28,500:
Solve using basic algebra... I leave that to you.
A quick and easy informal solution, if your mental math is good....
(1) $28,500 return on an investment of $300,000 is a percentage return of 9.5%.
(2) 9.5% is 2/3 of the way from 8.5% to 10% (picture those percentages on a number line, if it helps)
(3) That means 2/3 of the total was invested at the higher rate.
ANSWER: 2/3 of $300,000, or $200,000, was invested at 10%; the other $100,000 at 8.5%.
CHECK: .10(200,000) + .085(100,000) = 20,000 + 8500 = 28,500
|
|
|
