Question

In investing $6,200 of a couple's money, a financial planner put some of it into a savings account paying 4% annual simple interest. The rest was invested in a riskier mini-mall development plan paying 9% annual simple interest. The combined interest earned for the first year was $428. How much money was invested at each rate?

Answer 1

Answer:

$ 2,600 was invested at 4% and $ 3,600 was invested at 9%.

Step-by-step explanation:

Given that in investing $ 6,200 of a couple's money, a financial planner put some of it into a savings account paying 4% annual simple interest, and the rest was invested in a riskier mini-mall development plan paying 9% annual simple interest, and the combined interest earned for the first year was $ 428, to determine how much money was invested at each rate, the following calculation must be performed:

3000 x 0.04 + 3200 x 0.09 = 408

2500 x 0.04 + 3700 x 0.09 = 433

2600 x 0.04 + 3600 x 0.09 = 428

Therefore, $ 2,600 was invested at 4% and $ 3,600 was invested at 9%.