Thread: 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?

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 be the amount invested at 8% interest
Let be the amount invested at 12% interest

then ............(1)

the interest gained on is dollars
the interest gained on is dollars
since the total interest gained is dollars, we have:

................(2)

now you have two equations and two unknowns, you can solve for and