Two investments totaling $23,500 $ ⁢ 23,500 produce an annual income of $795 $ ⁢ 795 . One investment yields 2% 2 % per year, while the other yields 7% 7 %

Question

Set up equation and solve

Answer 1

Let x = amount invested at 2%

23500-x = amount invested at 7%

 

I = prt

 

795 = 0.02(x) + 0.07(23500 - x)

 

795 = 0.02x + 1645 - 0.07x

 

-850 = -0.05x

 

x = $17,000 invested at 2%

23500 - x = $6,500 invested at 7%