word problem

Question

An Actor invests some money at 5% and $47000 more than four times the amount at 6%. the total annual interest earned from the investment in $41970. how much did he invest at each amount? use the six-step method

Answer 1

Interest = Principle*Rate*Time

 

Let P = the amount invested at 5%.  From the problem statement, the amount invested at 6% is 4P + $47,000.

 

$41,970 = P*(0.05)*(1 year) + (4P+$47,000)*(0.06)*(1 year)

 

$41,970 = 0.05P + 0.24P + $2820

 

$39,150 = 0.29P

 

Solve for P, the amount invested at 5%.  The amount invested at 6% is 4P + $47,000