An executive invests $22,000, some at 7% and some at 6% annual interest. If he receives an annual return of $1,420, how much is invested at each rate?

avissidep

avissidep

Answered question

2021-06-25

An executive invests $22,000, some at 7% and some at 6% annual interest. If he receives an annual return of $1,420, how much is invested at each rate?

Answer & Explanation

Jaylen Fountain

Jaylen Fountain

Skilled2021-06-27Added 169 answers

Heres
Ian Adams

Ian Adams

Skilled2021-08-04Added 163 answers

If x is invested at 7%, then 22000−x is invested at 6%.
The annual return is $1420 so we can write:
0.07x+0.06(22000x)=1420
Solve for x:
0.07x+13200.06x=1420
0.01x+1320=1420
0.01x=100
x=1000.01
x=10000
So, the executive invested $10,000 at 7% and $12,000 at 6%.

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