Investment problems such as those in Exercise can be solved by using a method similar to the one explained in Example, along with the simple-interest formula I = PRT, where I is the interest earned, P is the initial amount of money deposited, R is the annual interest rate as a decimal, and T is the time the money is deposited in years. Solve each problem. Let T = 1 year for each exercise.
Example
Lottery Winnings Nancy B. Kindy won $200,000 in a state lottery. She first paid income tax of 30% on the winnings. Of the rest, she invested some at 1.5% and some at 4%, earning $4350 interest per year. How much did she invest at each rate?
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