Mr. Kheung had 2,000 dollars to invest. He invested part of it at 5% per year and the remainder at 4% per year. After one year, his investment grew to 2,095 dollars. How much of the original investment was at the 5% rate?

Guest Jan 31, 2021

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*Mr. Kheung had 2,000 dollars to invest. He invested part of it at 5% per year and the remainder at 4% per year. After one year, his investment grew to 2,095 dollars. How much of the original investment was at the 5% rate?*

Assuming simple interest

Let the amount invested at 5% per year be represented by **X**

Let the amount invested at 4% per year be represented by **2,000 – X**

The total interest is the final value less the principal which is 2,095 – 2,000 = **95**

The total interest is the sum of the two investments

(0**.**05)(X) + (0**.**04)(2,000 – X) = 95

Can you take it from there? Solve for X. Go ahead and try. and use the following to check your answer.

(0**.**05)(X) + (0**.**04)(2,000 – X) = 95

** .**05X + 80 – **.**04X = 95

Combine the X's to get **.**01X

and subtract 80 from each side **.**01X = 15

Divide both sides by **.**01 X = **1500** invested at 5%

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Guest Jan 31, 2021