Question

An investment club used funds totaling $200,000 to invest in a bio-tech company and in an ethanol plant, with hopes of earning 11% and 16% annual simple interest, respectively. Their hunch paid off. The club made a total of $26,000 interest the first year. How much was invested at each rate? $ at 11% = $ at 16% =

Answer 1

Set the equation
0.11x+0.16 (200000-x)=26000
Solve the equation for x
0.11x+32000-0.16x=26000
0.11x-0.16x=26000-32000
-0.05x=-6000
X=6000÷0.05
X=120000 invested at 11%

200000-120000=80000 invested at 16%

Hope it helps!