The finance charge you will pay in dollars is the only thing you need to know about a loan
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Answer:
$2000 was invested at 5% and $5000 was invested at 8%.
Step-by-step explanation:
Assuming the interest is simple interest.
<u>Simple Interest Formula</u>
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:
Rewrite Equation 1 to make P₁ the subject:
Substitute this into Equation 2 and solve for P₂:
Substitute the found value of P₂ into Equation 1 and solve for P₁:
$2000 was invested at 5% and $5000 was invested at 8%.
Learn more about simple interest here:
