SOLUTION: The annual interest on a $13,000 investment exceeds the interest earned on an $8000 investment by $465. The $13,000 is invested at a 0.5% higher rate of interest than the $8000.
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Question 976914: The annual interest on a $13,000 investment exceeds the interest earned on an $8000 investment by $465. The $13,000 is invested at a 0.5% higher rate of interest than the $8000. What is the interest rate of each investment? Answer by richwmiller(17219) (Show Source):
You can put this solution on YOUR website! b=a+.005
b*13000-a*8000=465
(a+.005)*13000-a*8000=465
13000a+.005*13000-8000a=465
5000a+65=465
5000a=400
50a=4
a=4/50=8/100=.08=8%
b=.085=8.5%
