SOLUTION: Willard invests a part of 50 000 pesos in a bank paying 12% interest annually and the rest in a loan association paying 15% interest annually. If his total income from the two inve

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Question 904904: Willard invests a part of 50 000 pesos in a bank paying 12% interest annually and the rest in a loan association paying 15% interest annually. If his total income from the two investments for one year is 6, 540, how much does he invest at each rate?
Answer by richwmiller(17219) About Me  (Show Source):
You can put this solution on YOUR website!
Total amount of money invested: $50000
x+y=50000,
Total yearly interest for the two accounts is: $6540
0.12*x+0.15*y=6540
x=50000-y
Substitute for x
0.12*(50000-y)+0.15*y=6540
Multiply out
6000-0.12y+0.15*y=6540
Combine like terms.
0.03*y=540
Isolate y
y=$18000.00 at 15%
x=50000-y
Calculate x
x=$32000.00 at 12%
Check
0.12*32000+0.15*18000=6540
3840+2700=6540
6540=6540
If this statement is TRUE and neither amount is negative then all is well