Question

A man has $34,000 to invest. He invests some of the money at 5% and the balance at 4%. His total annual interest income is $1545. Find the amount invested at each rate

Answer 1

Answer:

Amount invested @ 5% = $18,500

Amount invested @ 4% = $34,000 - $18,500 = $15,500

Explanation:

Provided we have the following details,

Total investment = $34,000

Let amount invested @ 5% = x

Then, amount invested at 4% = $34,000 - x

Thus, $(x \times 0.05) + (( 34,000 - x) \times 0.04) = 1,545$

0.05x + $1,360 - 0.04x = $1,545

0.01x = $1,545 - $1,360 = $185

x = $185/0.01 = $18,500

Thus, amount invested @ 5% = $18,500

Amount invested @ 4% = $34,000 - $18,500 = $15,500