Working with rate of interests
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Invest a total of $4000 in 2 stocks that paid 5% and 7% annual interests. At the end of the year total interests from these investments is $230. How much was invested at each rate?
© BrainMass Inc. brainmass.com December 24, 2021, 4:59 pm ad1c9bdddfhttps://brainmass.com/business/business-math/working-rate-interests-20398
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We will prepare two equations from the given data,
Let the amounts be x and y
they add up to 4000$, that is x + y = 4000 ------(1)
We received a total of 230$ as interest,
that is,
x * (5/100) + y * (7/100) = 230
Or, 5x + 7y = 23000 -----(2)
But we know, y = 4000-x
Substitute in 2,
5x + 7 * (4000-x) = 23000
or, 5x - 7x + 28000 = 23000
or, -2x = 23000 - 28000 = - 5000
or x = 2500
Now, y = 4000 - 2500 = 1500
Thus the amounts are 2500$ and 1500$
© BrainMass Inc. brainmass.com December 24, 2021, 4:59 pm ad1c9bdddf>https://brainmass.com/business/business-math/working-rate-interests-20398