WORD PROBLEM

Question

Rita invested an amount of $2250 in to two different banks. She invested some amount in a bank that offers 6% interest rate; and some in a bank that offers 8% interest rate. The yearly income on the 8% investment is $6 more than twice the income from the 6% investment. How much did she invest in each bank

Answer 1

Let x = the amount invested at 8% ... then 2250 - x = the amount invested at 6%.

 

Then (.08) times x is the amount earned at 8% and (.06) times (2250 - x) is the amount earned at 6%.

 

(.08) times x = 6 + 2[ (.06) times (2250 - x)]

 

x = 1380 (amount invested at 8%) and the rest 870 = amount invested at 6%