Expert: Bobby Soltani - 8/9/2004

Question
The annual return on two investments totals $464. One investment gives 8% interest and the other 7.5%. How much money is invested at each rate if the total investment is $6000?

Answer
Hi Doug,

This problem involves two equations and two unknowns.  Let's say that the amount invested at 8% is x and the amount invested at 7.5% is y.  We know that 8% of x and 7.5% of y is equal to $464.  We also know that x plus y is equal to $6000 since that is the total amount invested.  Here are the two equations:
0.08x+0.075y = 464
x+y = 6000

plug y = 6000 - x into the first equation for y and solve for x.  Then, use the second equation to solve for y.

Let me know if you have any questions.  Good Luck.

Bobby