SOLUTION: Two investments totaling $17,500 produce an annual income of $775. One investment yields 2% per year, while the other yields 7% per year. How much is invested at each rate?
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Question 950521: Two investments totaling $17,500 produce an annual income of $775. One investment yields 2% per year, while the other yields 7% per year. How much is invested at each rate? Answer by macston(5194) (Show Source):
You can put this solution on YOUR website! T=invested at 2%; S=invested at 7%
S+T=$17500
S=17500-T
0.02T+0.07S=$775 Substitute for S
0.02T+0.07($17500-T)=$775
0.02T+1225-0.07T=$775 Subtract $775 from each side.
-0.05T+$450=0 Add 0.05T to each side.
$450=0.05T Divide each side by 0.05
$9000=T ANSWER 1: $9000 was invested at 2%
S=$17500-T=$17500-$9000=$8500 ANSWER 2:$8500 was invested at 7%.
CHECK
0.02T+0.07S=$775
0.02($9000)+0.07($8500)=$775
$180+$595=$775
$775=$775
