Answer:
Amount invested in 5% interest = $14,000
Amount invested in 9% interest = $2,000
Step-by-step explanation:
Given:
Total amount invested = $16,000
Total interest earned = $880
Uknowns:
Let:
x = Money invested in 5%(0.05) interest
y = Money invested in 9%(0.09) interest
Equations:
Equation for the total amount invested:
x + y = 16,000 <--- equation 1
Equation for the total interest earned:
0.05x + 0.09y = 880 <--- equation 2
Solution:
Solving for x and y using substitution method,
In equation 1:
x + y = 16,000
y = 16,000 - x <--- equation 3
Substitute equation 3 in equation 2 to solve for x
0.05x + 0.09y = 880
0.05x + 0.09(16,000 - x) = 880
0.05x + 1,440 - 0.09x = 880
0.05x - 0.09x = 880 - 1,440
-0.04x = -560
x = -560/-0.04
x = $14,000 (amount invested in 5% interest)
Substitute the value of x in equation 3 to solve for y
y = 16,000 - x
y = 16,000 - 14,000
y = $2,000 (amount invested in 9% interest)
