Question

Phyllis invested 32000 dollars, a portion earing a simple interest rate of 5 percent per year and the rest earning a rate of 6 percent per year. After

one year the total interest earned on these investments was 1820 dollars. How much money did she invest at each rate?

Answer 1

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Answer:

• $10,000 at 5%
• $22,000 at 6%

Explanation:

Let x represent the amount invested at 6%. Then 32000-x is the amount invested at 5%, and the total interest earned is ...

0.06x +0.05(32000 -x) = 1820

0.01x +1600 = 1820 . . . . simplify

0.01x = 220 . . . . . . . . . . subtract 1600

x = 22,000 . . . . . . . . . . . multiply by 100

32000 -x = 10,000

Phyllis invested $22,000 at 6% and $10,000 at 5%.