1. ## Algebra Applications/Word problems

I' am currently studying for the GRE and would really appreciate it if someone could help me with a word problem. If you could show work that would be awesome.

Problem:

Pat invested a total of $3,000. Part of the money yields 10 percent interest per year, and the rest yields 8 percent interest per year. If the total yearly interest from this investment is$256, how much did pat invest at 10 percent and how much at 8 percent?

2. Originally Posted by jgjimcat
I' am currently studying for the GRE and would really appreciate it if someone could help me with a word problem. If you could show work that would be awesome.

Problem:

Pat invested a total of $3,000. Part of the money yields 10 percent interest per year, and the rest yields 8 percent interest per year. If the total yearly interest from this investment is$256, how much did pat invest at 10 percent and how much at 8 percent?
simple interest ...

I = Prt

t = 1 year

let x = amount invested at 10%

3000-x = amount invested at 8%

x(.10) + (3000-x)(.08) = 256

solve for x

3. Originally Posted by skeeter
simple interest ...

I = Prt

t = 1 year

let x = amount invested at 10%

3000-x = amount invested at 8%

x(.10) + (3000-x)(.08) = 256

solve for x
Thank You Skeeter, I solved the problem, but could you explain to me what each variable stands for. The equation I=Prt

4. Originally Posted by jgjimcat
Thank You Skeeter, I solved the problem, but could you explain to me what each variable stands for. The equation I=Prt
I = interest earned

P = principle (initial) investment

r = annual interest rate expressed as a decimal

t = time in years