Things did not go quite as planned. You invested $8000, part of it in stock that paid 12% annual interest. However, the rest of the money suffered a 5% loss. If the total annual income from both investments was $620, how much was invested at each rate

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Business

Asia Joyce

28 May, 09:18

Things did not go quite as planned. You invested $8000, part of it in stock that paid 12% annual interest. However, the rest of the money suffered a 5% loss. If the total annual income from both investments was $620, how much was invested at each rate

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Answers (1)

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Kathy Carpenter · Answer 1

Answer: $ 6000 and $ 2000

Explanation: Let X represent the investment at 12%.

If x was invested at 12%

Then 8000-x suffered a 5% loss.

0.12x - 0.05 (8000-x) = 620

0.12x - 400 + 0.05x = 620

0.17x = 1020

Solve for x

x = 1020 / 0.17

x = $6000

Hence $6000 was invested at 12% and $2000 was the loss at 5%