Word Problems Involving Investments

Investment type problems are a type of mixture problem. In this type of problem we are mixing money into different accounts. For example…...

Ron Burgandy has $15,000 to invest. He plans to diversify his money by investing it in two different accounts. One account gives 11.5% interest and the other 9% interest. If he wants to make $1562.50 in interest in the first year, how much should he place in each account?

BACK

Ron Burgandy has $15,000 to invest. He plans to diversify his money by investing it in two different accounts. One account gives 11.5% interest and the other 9% interest. If he wants to make $1562.50 in interest in the first year, how much should he place in each account?

Principal Rate Interest

First Acct.

Second Acct.

Total

.115

.09

x

15000 - x

The interest of the 2 accounts added together equal the total.

.115x

.09(15000-x)

15,000 1562.50

BACK

Ron invested $8500 in the 11.5% acct. and $6500 in the 9% acct. BACK

50.15621500009.115. xx

50.156209.1350115. xx

50.15621350025. x50.212025. x

8500x6500850015000

Chazz Michael Michaels invested $12,500 in two simple interest accounts. One account earns annual simple interest of 7% while the other earns 6%. How much was invested at each rate if each account earned the same interest? Round your answer to the nearest dollar.

Principle Rate Interest

7% x .07

6% 12500- x .06

12,500

BACK

.07x

.06(12500-x)

To write the equation, the original problem states that the amount of interest is equal. xx 1250006.07.

xx 1250006.07.

xx 06.75007.

75013. x

5769$23.5769 x

Word Problems Involving Investments