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The Peace and Development Club raised $5 000 for a trip to Guatemala in the future. The club invested part of the money in an account that paid 4% simple interest, and the rest in a government bond that paid 3.5% simple interest per year. After one year, the club earned a total of $190 in interest. How much was invested at each rate?  

Guest Sep 28, 2017
 #1
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Call the amount invested at 4%  = .04 =   = x

 

So   the amount invested at   3.5%  =  .035  =  5000 - x

 

And     Amount * Interest Rate  = Total Interest   .....so...

 

 

Amount at 4%    +   Amount at 3.5%  =  190          and we have that

 

(x) (.04)   +  ( 5000 - x) (.035)  = 190      simplify

 

.04x  +  175  - .035x  =   190          combine like terms     

 

.005x +  175   = 190                   subtract 175 from both sides

 

.005x  =   15                divide both sides by  .005

 

 

x  = $3000   = amount   invested at  4%

 

5000 - x  =    5000  - 3000  = $2000  = amount invested at 3.5% 

 

 

 

cool cool cool

CPhill  Sep 28, 2017

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