Interest Algebra Finance Question

Question

Mike and Ike each inherited a sum of money form an uncle. Mike received $800 more than Ike. Ike invested his at 8 percent and Mike invested his at 7 percent. If Mike received $16 a year more than Ike in interest, how much did each inherit?

Answer 1

Money Ike = Money Mike - $16

If money Ike inherits = I and money Mike inherits = X then

X*8/100 = [ (X+800) * 7 / 100 ] - 16

8 * X = 7 * X + 5600 - 1600

X = 4000

so ans is Ike inherit 4000 $ and Mike Inherit 4800 $.