Two investments totaling $53,500 produce an annual income of $4,030. One investment yields 10% per year, while the other yields 4% per year.
How much is invested at each rate?
Basic Algebra - Rate of Return:
This problem calls for the use of algebra, a branch of mathematics that dates back centuries. Algebraic equations substitute letters for numbers. In doing so, they enable users to express real-world variables and relationships into equations and solve for unknowns.
Answer and Explanation:
We are given the following two equations:
.10x + .04y = $4,030
x + y = $53,500
By embedding the second equation into the first, we can solve the problem. The computations and results are outlined below.
.10($53,500 - y) + .04y = $4,030
$5,350 - .10y + .04y = $4,030
-.06y = -$1,320
y = $22,000
We know y. Now, we can plug y into the second equation to solve x. See below.
x + $22,000 = $53,500
x = $31,500
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Learn more about this topic:
from SAT Subject Test Mathematics Level 2: Tutoring SolutionChapter 4 / Lesson 10