Question

A total of $6000 is invested: part at 7% and the remainder at 11 %. How much is invested at each rate if the annual interest is $460?

Answer 1

Let x = the amount invested at 11%.

Then 6000-x = the amount invested at 7%

The total interest earned is $460.

So we can write

0.11x + 0.07(6000-x) = 460

Solve for x:

0.11x - 0.07x + 420 = 460

x = 40/0.04

x=1000

Therefore the amount invested at 7% interest = 6000 - 1000 = $5000