linda won $200,000 in a lottery she first paid income tax of 30% on the winnings. she invested some of the rest at 1.5% and some at 4% earning $4350 interest per year how much she invest at each rate?

Question

This is a question on a homework assignment that I can't figure out. I'm not sure how to set up the equation

Answer 1

Let L =amt at low interest and

H = amt at high interest

L + H = .7 * 200000

.015L + .04H = 4350

Multiply the first equation by 15 and the second equation by 1000

Then subtract to eliminate the L and give an equation in H.

You take it from here.

First of all: Linda didn't invest all her money; she paid 30% in taxes which leaves her 70% to invest.

The sum of the amount at low interest and the amount at high interest is the total invested=70% of 200000.

In interest she gets 1.5% on L dollars and 4% of H dollars for a total of 4350 interest

Then follow my directions to get:

15L + 15H = 15*140000

15L + 60H = 4350*1000

Now subtract the top equation from the bottom to get

45H = 4350000-2100000

Now take it from here!