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Question 838000: An amount of money invested for 1 year in a savings account will earn $240. That same money, invested in a mini-mall development will earn $1920 interest in a year, because the interest paid is 14 percentage points more than that paid by the savings account. Find the rate of interest paid by each investment.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! An amount of money invested for 1 year in a savings account will earn $240. That same money, invested in a mini-mall development will earn $1920 interest in a year, because the interest paid is 14 percentage points more than that paid by the savings account. Find the rate of interest paid by each investment.
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Equations:
i*x = 240
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(i+0.14)x = 1920
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ix + 0.14x = 1920
240 + 0.14x = 1920
0.14x = 1680
x = $12000 (amt invested)
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Solve for "i":
i*12000 = 240
i = 240/12000
i = 0.02 = 2% (interest rate)
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Cheers,
Stan H.
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