SOLUTION: you receive an inheritance of $20,000 and decide to split it into two parts to invest. One part was invested at 6% interest and the rest at 8% interest. Find the amount invested at

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Question 911732: you receive an inheritance of $20,000 and decide to split it into two parts to invest. One part was invested at 6% interest and the rest at 8% interest. Find the amount invested at each rate if the annual income from the two investments is $1,500.
Answer by richwmiller(17219) About Me  (Show Source):
You can put this solution on YOUR website!
Total amount of money invested: $20000
x+y=20000,
Total yearly interest for the two accounts is: $1500
0.06*x+0.08*y=1500
x=20000-y
Substitute for x
0.06*(20000-y)+0.08*y=1500
Multiply out
1200-0.06*y+0.08*y=1500
Combine like terms.
0.02*y=300
Isolate y
y=$ 15000.00 at 8% earns $1200 interest
x=20000-y
Calculate x
x=$ 5000.00 at 6% earns $300 interest
Check
0.06*5000+0.08*15000=1500
300+1200=1500
1500=1500
If this statement is TRUE and neither x nor y is negative then all is well
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