SOLUTION: pablo invested $24,000 in two money market funds. The first paid 5% interest per year and the second paid 3% interest per year. He earned a total profit of $1120 in one year. How m
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Question 199889: pablo invested $24,000 in two money market funds. The first paid 5% interest per year and the second paid 3% interest per year. He earned a total profit of $1120 in one year. How much did he invest at each rate? Answer by nerdybill(7384) (Show Source):
You can put this solution on YOUR website! pablo invested $24,000 in two money market funds. The first paid 5% interest per year and the second paid 3% interest per year. He earned a total profit of $1120 in one year. How much did he invest at each rate?
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Apply the interest formula:
interest = principle(rate)(time)
I = PRT
.
Let x = amount invested at 5%
then
24000-x = amount invested at 3%
.
.05x + .03(24000-x) = 1120
.05x + 720 - .03x = 1120
.02x + 720 = 1120
.02x = 400
x = $20,000 (amount invested at 5%)
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Amount invested at 3%:
24000-x = 24000-20000 = $4,000
