The amount of $15,000 is invested in two funds paying 2% and 5% simple interest. If the annual interest is $540, how much of the $15,000 is invested in each interest rate?

Answer :

Answer:

The amount $15000 is divided as

in 2% = $7000

in 5% = $8000

Step-by-step explanation:

It is given that the total amount is $15000 and rates of interests are 2% and 5%.

Let the amount invested in 2% be "x", so the amount invested in 5% is (15000 - x).

The annual interest on x part is given as,

= [tex](\frac{2}{100})(x)[/tex]

Similarly, The annual interest on (15000 - x) part is given as,

=  [tex](\frac{5}{100})(15000 - x)[/tex]

the total annual interest is given as $540

Thus, 540 = [tex](\frac{5}{100})(15000 - x) + (\frac{2}{100})(x)[/tex]

54000 = [tex]2(x) + 75000 - 5(x)[/tex]

21000 = 3(x)

x = [tex]\frac{21000}{3}[/tex] = 7000

Thus the shares are $7000 and (15000 - 7000) $8000 .

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