Question

A total of $150000 is invested in two funds paying 6.25% and 6% simple interest. If the total interest for the year is $9212.50, how much is invested at each rate?

Answer 1

Answer:

• $85,000 at 6.25%
• $65,000 at 6.00%

Step-by-step explanation:

Let x represent the amount invested at 6.25%. Then the total interest earned is ...

  0.0625x + 0.0600(150,000 -x) = 9212.50

  0.0025x = 212.50 . . . . . . subtract 9000, collect terms

  x = 212.50/0.0025 = 85,000

  150,000 - 85,000 = 65,000 . . . . amount invested at the lower rate

$85,000 is invested at 6.25%; $65,000 is invested at 6%.