Answer:
First = 1000
Second = 10,000
Step-by-step explanation:
Given the following :
Amount invested = $11,000
A portion earns 2 1/2 % interest per year
The rest earns a rate of 2% per year
Total Interst earned after a year = $255
Amount invested at each rate
Let amount invested at 2 1/2% = a
Amount invested at 2% = 11,000 - a
Simple interest = principal * rate * time
First investment :
a * 5/2% * 1
Second :
(11000 - a) * 2%
Firat investment + second = $225
a * 0.025 + (11000 - a) * 0.02 = 225
0.025a + 220 - 0.02a = 225
0.005a = 225 - 220
0.005a = 5
a = 5 / 0.005
a = 1000
Amount in first investment = 1000
Second investment = 11000 - 1000 = 10,000
