Question

√₂

Answer 1

Answer:

$2000 was invested at 5% and $5000 was invested at 8%.

Step-by-step explanation:

Assuming the interest is simple interest.

Simple Interest Formula

I = Prt

where:

• I = interest earned.
• P = principal invested.
• r = interest rate (in decimal form).
• t = time (in years).

Given:

• Total P = $7000
• P₁ = principal invested at 5%
• P₂ = principal invested at 8%
• Total interest = $500
• r₁ = 5% = 0.05
• r₂ = 8% = 0.08
• t = 1 year

Create two equations from the given information:

$\textsf{Equation 1}: \quad \sf P_1+P_2=7000$

$\textsf{Equation 2}: \quad \sf P_1r_1t+P_2r_2t=I\implies 0.05P_1+0.08P_2=500$

Rewrite Equation 1 to make P₁ the subject:

$\implies \sf P_1=7000-P_2$

Substitute this into Equation 2 and solve for P₂:

$\implies \sf 0.05(7000-P_2)+0.08P_2=500$

$\implies \sf 350-0.05P_2+0.08P_2=500$

$\implies \sf 0.03P_2=150$

$\implies \sf P_2=\dfrac{150}{0.03}$

$\implies \sf P_2=5000$

Substitute the found value of P₂ into Equation 1 and solve for P₁:

$\implies \sf P_1+5000=7000$

$\implies \sf P_1=7000-5000$

$\implies \sf P_1 = 2000$

$2000 was invested at 5% and $5000 was invested at 8%.

Learn more about simple interest here:

brainly.com/question/27743947

brainly.com/question/28350785