SOLUTION: Tricia received an inheritance of $5500. She invested part of it at 8% simple interest and the remainder at 12% simple interest. At the end of the year she had earned $540. H

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Tricia received an inheritance of $5500. She invested part of it at 8% simple interest and the remainder at 12% simple interest. At the end of the year she had earned $540. H      Log On

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Question 905205: Tricia received
an inheritance of $5500. She invested part of it at 8%
simple interest and the remainder at 12% simple interest.
At the end of the year she had earned $540. How much
did Tricia invest at each interest amount?
Answer by richwmiller(17219) About Me  (Show Source):
You can put this solution on YOUR website!
Total amount of money invested: $5500
x+y=5500,
Total yearly interest for the two accounts is: $540
0.08*x+0.12*y=540
x=5500-y
Substitute for x
0.08*(5500-y)+0.12*y=540
Multiply out
440-0.08y+0.12*y=540
Combine like terms.
0.04*y=100
Isolate y
y=$ 2500.00 at 12%
x=5500-y
Calculate x
x=$ 3000.00 at 8%
Check
0.08*3000+0.12*2500=540
240+300=540
540=540
If this statement is TRUE and neither amount is negative then all is well