+0  
 
0
609
1
avatar

Jack invests $1000 at a certain annual interest rate, and he invests another $2000 at an annual rate that is one-half percent higher. If he receives a total of $160 interest in 1 year, at what rate is the $1000 invested?

Guest Sep 26, 2014

Best Answer 

 #1
avatar+17745 
+5

Since 1 percent is 0.01, one-half percent is 0.005.

Let x be the interest rate of the $1000 investment; then x + 0.005 will be the interest rate of the $2000 investment.

Formula: (Amount Invested)(Interest Rate) + (Amount Invested)(Interest Rate) = (Interest Earned) 

     (1000)(x) + (2000)(x+0.005) = 160

     1000x + 2000x + 10 = 160

      3000x + 10 = 160

      3000x = 150

      x = 150 / 3000

      x = 0.05    ---> The $1000 is invested at 5%.

Check: ($1000)(0.05) + ($2000)(0.055) = $50 + $110 = $160

geno3141  Sep 26, 2014
 #1
avatar+17745 
+5
Best Answer

Since 1 percent is 0.01, one-half percent is 0.005.

Let x be the interest rate of the $1000 investment; then x + 0.005 will be the interest rate of the $2000 investment.

Formula: (Amount Invested)(Interest Rate) + (Amount Invested)(Interest Rate) = (Interest Earned) 

     (1000)(x) + (2000)(x+0.005) = 160

     1000x + 2000x + 10 = 160

      3000x + 10 = 160

      3000x = 150

      x = 150 / 3000

      x = 0.05    ---> The $1000 is invested at 5%.

Check: ($1000)(0.05) + ($2000)(0.055) = $50 + $110 = $160

geno3141  Sep 26, 2014

17 Online Users

New Privacy Policy

We use cookies to personalise content and advertisements and to analyse access to our website. Furthermore, our partners for online advertising receive information about your use of our website.
For more information: our cookie policy and privacy policy.