Investment Problem help?
1)Melissa Invested her P5000 for 3 years, and it earned a total of P1,200. At what rate of interest did she invest her money?
2)A sum of P200,000 is split between two investments, one paying 7% interest, and the other on 8%. If the return on the 8% exceeds that on the 7% investment by P4000 per year, how much was invested at each rate?
**Remember, I want the details on how you solved it I’m having a bit of trouble on this subject..
Favorite Answer
1)
n= number of years
i = interest
Interest earned
= (Initial amount) x (1 + i)^n – (Intial amount)
1200 = 5000 x (1 + i)^3 – 5000
Solve for i here
2)
Let the investment in one of them be F
Therefore, the investments are F and (200,000 – F)
(F x 0.08) – ((200,000 – F) x 0.07) = 4000
Solve for F here
- Academic Writing
- Accounting
- Anthropology
- Article
- Blog
- Business
- Career
- Case Study
- Critical Thinking
- Culture
- Dissertation
- Education
- Education Questions
- Essay Tips
- Essay Writing
- Finance
- Free Essay Samples
- Free Essay Templates
- Free Essay Topics
- Health
- History
- Human Resources
- Law
- Literature
- Management
- Marketing
- Nursing
- other
- Politics
- Problem Solving
- Psychology
- Report
- Research Paper
- Review Writing
- Social Issues
- Speech Writing
- Term Paper
- Thesis Writing
- Writing Styles