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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 p

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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?

Sep 28, 2017

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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%

Sep 28, 2017