Desa invested a certain amount of money at 4% interest and $2,500 more than that amount at 7%. Her total yearly interest was $835. How much did she invest at each rate?
A) $7,000 at 4% and $9,500 at 7%
B) $8,500 at 4% and $6,000 at 7%
C) $6,000 at 4% and $8,500 at 7%
D) $5,000 at 4% and $7,500 at 7%
E) $8,000 at 4% and $10,500 at 7%

Question

Quizplus · Accepted Answer

Let x be the amount invested at 4% interest.

Then, the amount invested at 7% interest is x + 2500.

The total interest earned is the sum of the interest earned from the two investments:

0.04x + 0.07(x + 2500) = 835

Simplifying this equation, we get:

0.04x + 0.07x + 175 = 835

0.11x = 660

x = 6000

Therefore, Desa invested $6,000 at 4% interest and $8,500 (which is $6,000 + $2,500) at 7% interest.

Desa Invested a Certain Amount of Money at 4% Interest