Nick borrowed $7150, to be repaired at an annual simple interest rate of 6.25%. How much interest will be due after 5 years? How
1 answer:
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<u>Answer: </u>
Physliis invested 32000 dollar at 5% interest rate and 34000 dollar at 7% interest rate.
<u>Solution:</u>
Let Phyllis invest ‘x’ dollar at 5% per year and (66000-x) dollar at 7% per year.
We know,
In the question it is given that Simple interest earned from both the investments at the end of the year is $3980.
Using the given below equation, we will try to find out the investments at each rate.
x = 32000
We can calculate amount for 7% interest rate by,
(66000-32000) =34000
Thus Phyllis invested 32000 dollar at 5% interest rate and 34000 dollar at 7% interest rate.