Question 1200438
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The response from the other tutor sets the problem up using the standard formal algebraic method.<br>
If formal algebra is not required, here is a way to solve any 2-part mixture problem like this with less work.<br>
A return of $114.40 on an investment of $4000 is an interest rate of 114.40/4000 = 0.0286 or 2.86%.<br>
Compare that to the two separate interest rates of 2.50% and 3.40% and observe/calculate that 2.86% is 0.36/0.90 = 2/5 of the way from 2.5% to 3.4%.  That means 2/5 of the total was invested at the higher rate.<br>
ANSWERS: 2/5 of $4000, or $1600, was invested at 3.4%; the other $2400 at 2.5%.<br>
CHECK: .034($1600)+.025($2400) = $54.40+$60.00 = $144.40<br>