Elementary Algebra

Published by Cengage Learning
ISBN 10: 1285194055
ISBN 13: 978-1-28519-405-9

Chapter 3 - Equations and Problem Solving - 3.5 - Problem Solving - Problem Set 3.5: 35

Answer

She invested 900 dollars at 3% interest, so she invested 2150 dollars at 5% interest.

Work Step by Step

Let X represent the amount of money invested at 3% interest. After a year, she received 3% of the X amount invested as interest. She received 3% $\times$ X = 0.03X. Also, she invested 1250 more than X, or X + 1250 at 5% interest. After a year, she received 5% of the X + 1250 as interest. She received 5% $\times$ (X + 1250) = 0.05X + 62.50 Her total yearly interest was 134.50 So: 0.03X + 0.05X + 62.50 = 134.50 0.08X = 72 Divide both sides by 0.08: X = 900 She invested 900 dollars at 3% interest. She invested 1250 dollars more than X, or 900 dollars, at 5% interest, so she invested 2150 dollars at 5% interest.
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