# Math Word Problem for homework...need help ASAP

• Jan 24th 2008, 05:33 PM
Tammy07
Math Word Problem for homework...need help ASAP
You inherit \$10,000 with the stipulation that for the first year the money must be placed in two investments paying 8% and 12% annual interest, respectively. How much should be invested at each rate if the total interest earned for the year is to be \$950?
• Jan 24th 2008, 05:38 PM
Jhevon
Quote:

Originally Posted by Tammy07
You inherit \$10,000 with the stipulation that for the first year the money must be placed in two investments paying 8% and 12% annual interest, respectively. How much should be invested at each rate if the total interest earned for the year is to be \$950?

Let $x$ be the amount invested at 8% interest
Let $y$ be the amount invested at 12% interest

then $x + y = 10000$ ............(1)

the interest gained on $x$ is $0.08x$ dollars
the interest gained on $y$ is $0.12y$ dollars
since the total interest gained is $950$ dollars, we have:

$0.08x + 0.12y = 950$ ................(2)

now you have two equations and two unknowns, you can solve for $x$ and $y$