Question

Larry Mitchell invested part of his $36,000 advance at 7% annual simple interest and the rest at 2% annual simple interest. If his total yearly interest from both
accounts was $1,970, find the amount invested at each rate.
The amount invested at 7% is $
The amount invested at 2% is $

Answer 1

The amount invested at each rate

Investment at 7% = $25000

Investment at 2%  = $11,000

What is investment?

Investment definition is an asset acquired or invested in to build wealth and save money from the hard earned income or appreciation.

Given:

Larry Mitchell invested = $36,000 at 7% annual simple interest

the rest at 2% annual simple interest.

Total investment = 36000

let the investment at 7% is x

then, invested at 2% = 36000 - x

Total interest earned = $1,970

Simple interest = principal * rate * time

Investment at 4%:

(x * 0.07) + [(36000 - x) * 0.02] = 1970

0.07x + 720 - 0.02x= 1970

0.05x = 1970-720

0.05x = 1250

x= 25000

Hence,

Investment at 7% = $25000

Investment at 2% = $36,000 - $25000 = $11,000

Learn more about this concept here:

brainly.com/question/18801028

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