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19 October, 10:05

Suppose you invested $10,000 part at 6% annual interest and the rest at 9% annual interest. If you received $684 in interest after one year, how much did you invest at each rate?

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  1. 19 October, 13:36
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    Assuming simple interest (i. e. no compounding within first year), then

    At 6%, interest = 10000*0.06=$600

    At 9% interest = 10000*0.09 = $900

    Two ways to find the ratio

    method A. let x=proportion at 6%

    then

    600x+900 (1-x) = 684

    Expand and solve

    300x=900-684=216

    x=216/300=0.72 or 72%

    So 10000*0.72=7200 were invested at 6%

    10000-7200=2800 were invested at 9%

    method B: by proportions

    Ratio of investments at 6% and 9%

    = 900-684 : 684-600

    =216 : 84

    = 18 : 7

    Amount invested at 6% = 18 / (18+7) * 10000 = 0.72*10000 = 7200

    Amount invested at 8% = 7 / (18+7) * 10000=0.28*10000=2800
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