an investment yields an annual interest of $1500. If $500 more is invested and the rate is 2% less, the annual interest is $1300. What is the amount of investment and the rate of interest?

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- September 6th 2010, 02:19 PMaeroflixan investment
an investment yields an annual interest of $1500. If $500 more is invested and the rate is 2% less, the annual interest is $1300. What is the amount of investment and the rate of interest?

- September 6th 2010, 02:40 PMpickslides
Sounds like a job for some simultaneous equations.

Given A is the initial amount invested, r is the rate then

Maybe use

(1+r)A= 1500+A ...(1)

and

(A+500)(1+(r-2))=1300+(A+500) ...(2)

Leaves you with some algebra.

I may be over complicating this one, it is early morning here! - September 6th 2010, 02:45 PMSoroban
Hello, aeroflix!

Quote:

An investment yields an annual interest of $1500.

If $500 more is invested and the rate is 2% less, the annual interest is $1300.

What is the amount of investment and the rate of interest?

Let = amount invested.

Let = rate of interest.

We are told that dollars at percent yields $1500.

. . Equation: .

We are told that dollars at percent yields $1300.

. . Equation: .

Now solve the system of equations.

You will get a quadratic equation

and must discard one of the roots. - September 8th 2010, 12:20 AMaeroflix
thanks