Question 1141702
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Here is an alternative to the standard algebraic solution method shown by the other tutor.<br>
(1) Picture the three percentages 3, 6.1, and 7 on a number line.<br>
(2) Imagine walking from 3 towards 7 on the number line, stopping when you reach 6.1.  What fraction of the distance have you walked?
{{{(6.1-3)/(7-3) = 3.1/4 = 31/40}}}<br>
(3) That fraction is the fraction of the total that must be invested at the higher rate.<br>
(31/40)*$1000 = 31*$25 = $775.<br>
ANSWER: $775 at 7%; $225 at 3%.<br>
Note that split gives you an average interest rate of EXACTLY 6.1%.  In reality, the requirement would be to have an average of AT LEAST 6.1%; that would mean the amount invested at the higher rate would have to be AT LEAST $775.