Cooking royalties Word problem

Question

Becky Schantz earned $48,000 from royalties on her cookbook. She paid a 28% income tax on these royalties. The balance was invested in two ways, some of it at 3.25% interest and some at 1.75%. The investments produced $904.80 interest per year. Find the amount invested at each rate.

Answer 1

Holly, if she paid 28% in interest, Becky was left with 72%, right? 48000(.72) = 34560

 

a + b = 34560 -------> a = 34560 - b

.0325a + .0175b = 904.8

 

.0325(34560 - b) + .0175b = 904.8

1123.2 - .0325b + .0175b = 904.8

-.015b = -218.4

b = 14560

 

a = 34560 - 14560 = 20000

 

Boom.