Thread: an 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?

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!

Hello, aeroflix!

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.

thanks