Given:
a.) Two investments are made summing up to 8,800.
b.) For a certain year, these investments yield P1,326 in simple interest.
c.) Part of the investment is allotted for 14% and part for 16%.
Recall: The simple interest formula.
[tex]\text{ I = Prt}[/tex]Where,
I = interest
P = principal amount
r = interest rate
t = time (in year)
Step 1:
P = 8,800
But it's been made into two investments.
Let,
A = investment 1
B = investment 2
We get,
A + B = 8,800 = P (Equation 1)
Step 2:
Part of the investment is allotted for 14% and part for 16%.
Thus,
For investment 1:
Ia = Art = A(14/100)(1) = 0.14A
For investment 2:
Ib = Brt = B(16/100)(1) = 0.16B
We get,
0.14A + 0.16B = 1,326 (Equation 2)
Step 3:
Substitute Equation 1 to Equation 2.
A + B = 8,800
A = 8,800 - B
0.14A + 0.16B = 1,326
0.14(8,800 - B) + 0.16B = 1,326
1,232 - 0.14B + 0.16B = 1,326
0.02B = 1,326 - 1,232
0.02B = 94
0.02B/0.02 = 94/0.02
B = 4,700
Let's now find A.
A + B = 8,800
A + 4,700 = 8,800
A = 8,800 - 4,700
A = 4,100
In Summary:
The amount invested at 14% is 4,100
The amount invested at 16% is 4,700
