nico is saving money for his education. he invests some money at 5%, and $1400 less than that amount at 3%.

Question

the investments produced a total of $118 interest in 1 yr. how much did he invest at each rate?

Answer 1

Nico invests some money at 5%; let M = amount invested

Nico also invests M - 1400 at 3%

After 1 year, the total interest is $118.

 

M (0.05) + (M + 1400)0.03 = $118

0.05M + 0.03M - 42 = $118

0.08M = $160

M = $2,000, so M - 1400 = $600

 

Proof: $2,000 x 0.05 + 600 x 0.03 = $118

$100 + 18 = $118

 

 

Answer 2

Thanks Joseph,  your answer confirmed!