Question

A church building fund has invested some money in two ways: part of the money at 3% interest and four times as much at 2.75%. Find the amount invested at each rate if the total annual income from interest is $2800.

Answer 1

Answer:

amount invested at rate 3 % is $20000

and amount invested at rate 2.75 % is $80000

Explanation:

given data

interest = 3%

four times = 2.75%

total annual income from interest = $2800.

solution

we consider here part of money p1  = x

rate r1 = 3%

and

4 time money p2 = 4x

rate r2 = 2.75 %

so we apply interest formula that is

interest = Principal×Rate×Time

2800 = { x × 0.03 × 1 } + { 4x × 0.0275 × 1 }

solve it we get

x = 20,000

and

and 4x will be = 4 × 20,000 = 80,000

so here

amount invested at rate 3 % is $20000

and amount invested at rate 2.75 % is $80000