Question 1199889: An investment adviser invested $14,000 in two accounts. One investment earned 5% annual simple interest, and the other investment earned 2.5% annual simple interest. The amount of interest earned for 1 year was $535. How much was invested in each account?
Answer by ikleyn(52776)   (Show Source):
You can put this solution on YOUR website! .
An investment adviser invested $14,000 in two accounts.
One investment earned 5% annual simple interest,
and the other investment earned 2.5% annual simple interest.
The amount of interest earned for 1 year was $535.
How much was invested in each account?
~~~~~~~~~~~~~~~~~~~
Let x be amount invested at 5% annually.
Then the amount invested at 2.5% is the rest (14000-x) dollars.
5% investment generates the annual interest of 0.05x dollars.
2.5% investment generates the annual interest of 0.025*(14000-x).
The totall annual interest equation is
0.05x + 0.025*(14000-x) = 535 dollars.
Simplify this equation and find x
0.05x + 0.025*14000 - 0.025x = 535,
0.05x - 0.025x = 535 - 0.025*14000
0.025x = 185
x = 185/0.025 = 7400.
Thus $7400 invested at 5% and the rest, $14000 - $7400 = $6600 invested at 0.025%. ANSWER
CHECK. 0.05*7400 + 0.025*6600 = 535 dollars, the total annual interest. ! correct !
Solved.
-----------------
To see other similar solved problems, look into the lesson
- Typical investment problems
- Using systems of equations to solve problems on investment
in this site.
|
|
|
