Answer:
Amount invested in A (8%) = $20,000
Amount invested in B (7%) = $9,000
Step-by-step explanation:
Given:
Total amount invested = $29,000
Interest rate A = 8% = 0.08
Interest rate B = 7% = 0.07
Annual return = $2,230
Find:
Amount invested in each
Computation:
Assume;
Amount invested in A = x
Amount invested in B = 29,000 - x
So,
Interest receive from A = x × 0.08
Interest receive from A = 0.08 x
Interest receive from B = (29000 - x) × 0.07
Interest receive from B = 2,030 - 0.07 x
Annual return = Interest receive from A + Interest receive from B
2,230 = 0.08 x + 2,030 - 0.07 x
x = 20,000
Amount invested in A = $20,000
Amount invested in B = 29,000 - $20,000
Amount invested in B = $9,000
