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**+2 **

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%

CPhill
Sep 28, 2017