Solving an Investment Problem (2.3.4)

Question 1

• Investment problem: A word problem that requests a solution involving interest on investments.

Answer 1

• Investment problem: A word problem that requests a solution involving interest on investments.

Question 2

Reading the question is always the most important part when solving any word problem.

In this example there is $6,000 to invest. Part of the $6,000 is invested at 5%. The remainder is invested at 8.5%.

Define the variable, F, as the amount invested at 5%. Then, the amount invested at 8.5% will be ($6,000 – F).

The total interest earned is $370. Write an equation where the sum of the interest earned from the two accounts is $370. After converting the percents to decimals, multiply the equation by 1000 to clear the decimals. Then, solve as usual to find the amount invested at 5%.

Use the amount invested at 5% and the fact that the total
amount invested is $6,000 to find the amount invested at
8.5%.

Answer 2

Reading the question is always the most important part when solving any word problem.

In this example there is $6,000 to invest. Part of the $6,000 is invested at 5%. The remainder is invested at 8.5%.

Define the variable, F, as the amount invested at 5%. Then, the amount invested at 8.5% will be $6,000 – F).

The total interest earned is $370. Write an equation where the sum of the interest earned from the two accounts is $370. After converting the percents to decimals, multiply the equation by 1000 to clear the decimals. Then, solve as usual to find the amount invested at 5%.

Use the amount invested at 5% and the fact that the total amount invested is $6,000 to find the amount invested at 8.5%.