SOLUTION: The annual interest on a $6000 investment exceeds the interest earned on a $5000 investment by $70. The $6000 is invested at a 0.5% higher rate of interest than the $5000. What is
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Question 836349: The annual interest on a $6000 investment exceeds the interest earned on a $5000 investment by $70. The $6000 is invested at a 0.5% higher rate of interest than the $5000. What is the interest rate of each investment Answer by mananth(16946) (Show Source):
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The annual interest on a $6000 be x
interest earned on a $5000be y
x-y=70...................(1)
rate of interest than the $5000. is (100/5000)y% = y/50 %
The $6000 is invested at a 0.5% rate of interest = (100/6000)x= x/60%
x/60 % - y/50 % = 0.5
multiply by 100
5x/3 -2y= 50
5x-6y=150..................(2)
x - y = 70 .............1
Total value
5 x -6 y = 150 .............2
Eliminate y
multiply (1)by -6
Multiply (2) by 1
-6 x 6 y = -420
5 x -6 y = 150
Add the two equations
-1 x = -270
/ -1
x = 270
plug value of x in (1)
1 x -1 y = 70
270 -1 y = 70
-1 y = 70 -270
-1 y = -200
y = 200
On 6000 he gets 270
which is 4.5%
On 5000 he gets 200
which is 4%
