Larry Mitchell invested part of his $36,000 advance at 7% annual simple interest and the rest at 2% annual simple interest. If h

Question

2 years ago

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Larry Mitchell invested part of his $36,000 advance at 7% annual simple interest and the rest at 2% annual simple interest. If h

is 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 $

Mathematics

1 answer:

alisha [4.7K] · Answer 1 · 2023-07-03T19:00:40+03:00

The amount invested at each rate

Investment at 7% = $25000

Investment at 2% = $11,000

<h3>What is investment?</h3>

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