investment

Question

paul and donna petrie invested$17,000, part at 2%, simple interest and the rest at 4% simple interest for a period of a year. how much did they invest at each rate if their total annual interest from both investments was $380?

Answer 1

Let x be the amount at 2%

 

Then $17,000 - x is amount at 4%

 

.02x + .04 ($17,000 - x) = $380

 

Multiply all terms by 100 to clear the decimal

 

2x + 4 ($17,000 - x) = $38,000

 

     2x + 68,000 - 4x = $38,000

 

                       -2x = - $30,000

 

                          x = $15,000

 

$15,000 at 2%;   $2000 at 4%