Heather has divided $5700 between two investments, one paying 8 %, the other paying 7 %. if the return on her investment is $420, how much does she have in each investment?

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8 April, 16:46

Heather has divided $5700 between two investments, one paying 8 %, the other paying 7 %. if the return on her investment is $420, how much does she have in each investment?

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Winston Porter · Answer 1

To answer, let x be the amount that is invested at 8% return. With this representation, the amount for that is invested at 7% return is 5700 - x. The total return is calculated through the equation,

R = P x i x n

where R is the return, P is the principal amount, i is the interest, and n is the number of years.

Substituting the known values,

420 = (x) (0.08) + (5700 - x) (0.07)

The value of x from the equation is 2100.

The value invested at 8% is $2,100 and the value invested at 7% is $3,600.