A woman invests $33,000, part at 8% and the rest at 9 1 2 % annual interest. If the 9 1 2 % investment provides $597.50 more income than the 8% investment, how much is invested at each rate?

Question

A woman invests $33,000, part at 8% and the rest at 9 1 2 % annual interest. If the 9 1 2 % investment provides $597.50 more income than the 8% investment, how much is invested at each rate?

Answer 1

33,000 invested at 8 and 9.5%

the latter gets 597.5 more interest

how much invested at each rate?

.095x = .08(33000-x) +597.5

x = amount invested at 9.5%

33000 - x = amount invested at 8%

.095x + .08x = .08(33000) + 597.5

.175x = 3237.5

x = 3237.5/.175= $18,500

33000=18500= $14,500