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Arnold invested \(64,000, some at 5.5% interest and the rest at 9%. How much did he invest at each rate if he received \)4500in interest in one year?

Short Answer

Expert verified

Arnold should invest$36,000at5.5%rate and$28,000at role="math" localid="1644492561584" 9%.

Step by step solution

01

Step 1. Given Information 

We are given that Arnold invested $64,000in two account with interest 5.5%and9%.

02

Step 2. Assumptions and Formation of equations. 

Let xand ybe the amount invested in first and second account respectively.

Total amount invested is equal to $64,000, so

x+y=64000

He received $4500every year, so the other equation is given by

5.5%x+9%y=45000.055x+0.09y=4500-(2)

03

Step 3. Solving the equations.  

The first equation can be written as,

x=64000-y

Now, putting the value of xin second equation, we get

0.055x+0.09y=45000.055(64000-y)+0.09y=45003520-0.055y+0.09y=45000.35y=980

Dividing by 0.35, we get

y=28000

Now, putting the value of xin third equation, we get

x=64000-28000x=36,000

Hence he should invest $36,000in first account with 5.5%and $28,000in second account with 9% interest.

04

Step 4. Checking the solution

Checking the solution by putting the value of x,yin the equations, we get

x+y=6400036000+28000=6400064000=640000.055x+0.09y=45000.055(36000)+0.09(28000)=45001980+2520=45004500=4500

This is true, hence the solution is correct.

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