An investor invested some money at 7% and some money at 5%. If the yearly interest on both investments is the same and the total amount of the investments is $12000...

Question

An investor invested some money at 7% and some money at 5%. If the yearly interest on both investments is the same and the total amount of the investments is $12000, find the amount of each investment?

Answer 1

a + b = 12,000 -----> a = 12,000 - b

0.07a = 0.05b

0.07(12,000 - b) = 0.05b

840 - 0.07b = 0.05b

0.12b = 840

b = $7000

a = 12,000 - 7000

a = $5000