A person spends a part of amount of $20,000 for buying. 40% of the remaining amount is given at 6% interest and the rest money is given at 10% interest. If the total interest the person gets is $1250, then what is the amount he used for buying?

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- August 12th 2009, 10:06 AMbluffmaster.roy.007SI
A person spends a part of amount of $20,000 for buying. 40% of the remaining amount is given at 6% interest and the rest money is given at 10% interest. If the total interest the person gets is $1250, then what is the amount he used for buying?

- August 12th 2009, 11:29 AMWilmer
I do not understand what you posted.

Could you ask someone to help you with your English? - August 12th 2009, 12:14 PMe^(i*pi)
My Interpretation

1. A person gets $20,000

2. This person then spends an amount of money

3. 40% of the remainder attracts 6% interest

4. 10% of the remainder (from step 2) attracts 10% interest.

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Let x be the amount he spends and y be the amount which gets interest

40% of y gets 6% interest:

60% of y gets 10% interest:

0.4y(1.06)^n + 0.6y(1.10)^n = 1250

If we assume n is over one period of time (usually annually) so that will cancel

- August 12th 2009, 06:49 PMSoroban
Hello, bluffmaster.roy.007!

I interpreted it differently . . .

Quote:

A person spends a part of amount of $20,000 for buying.

40% of the remaining amount is given at 6% interest

and the rest of the money is given at 10% interest.

If the total interest the person gets is $1250,

then what is the amount he used for buying?

The person has $20,000.

He spend dollars for buying.

He has dollars remaining.

40% of this remainder is: . dollars.

This earns 6% interest: .

60% of the remainder is: . dollars.

This earns 10% interest: .

The total interest is $1250: .

We have: .

Therefore, he used $5,119.05 for buying.

- August 18th 2009, 01:46 PMmobyn3dalternate solution......
Mr sorobon is rite..........

lets see how eazy it is..........consider x be the amount remainin...

that is x=20,000-amount used for buying.

40% of remaining amount x gets 6%interest

that is......(0.4)(0.06)(x)

and for second interest (0.6)(0.1)(x)

together they make 1250$=0.024x+0.06x

x=1250/0.084=14880.1

so amount used for buying is 20,000-x

and that is 5119.9$....