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# investment

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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?

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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Jan 31, 2021