Setting up Interest Problems
Date: 9/7/96 at 15:26:39 From: John Osborn Subject: Setting up Interest Problems I start with $10,000 in principle. I investing part in savings at 12 percent simple interest and the rest in a mutual fund at 15 percent annually. At the end of one year the income from the two funds is $1,275. How much was invested in each fund? I know the following: $10,000 = Principle $1,275 = Interest Earned 12 & 15 percent = Rate 1yr (12 mo) = Time How do I go about setting this problem up?
Date: 9/8/96 at 0:58:32 From: Doctor Mike Subject: Re: Setting up Interest Problems Hi John, Put S dollars into Savings and F dollars into the Fund. Since all of the principal is invested in one or the other place, you have S + F = 10000 . The information about rates and total earnings tells you S*(0.12) + F*(0.15) = 1275 . I hope this helps. You can take it from here. -Doctor Mike, The Math Forum Check out our web site! http://mathforum.org/dr.math/
Search the Dr. Math Library:
Ask Dr. MathTM
© 1994- The Math Forum at NCTM. All rights reserved.