nico is saving his money for college he invests some money at 8% and $1300 less than that amount of 5% the investments produced the amount of $195 interest in 1 year how much did he invest at each rate?
.08 x + .05(x -1300) = 195
8 x + 5(x-1300) = 19500
3 x - 6500 = 19500
3 x = 26,000
x = 8666.67
x-1300 = 7366.67
To determine how much Nico invested at each interest rate, we can set up a system of equations based on the given information.
Let's say Nico invested X dollars at 8% and (X - $1300) dollars at 5%.
Based on the given information, the interest earned after one year on both of these investments combined is $195.
Therefore, we can create the following equation:
0.08X + 0.05(X - $1300) = $195
Now, let's solve this equation to find the value of X, which represents the amount Nico invested at 8%.
0.08X + 0.05X - 0.05($1300) = $195
0.08X + 0.05X - $65 = $195
0.13X = $260
X = $260 / 0.13
X = $2000
So, Nico invested $2000 at an 8% interest rate.
To find out how much he invested at a 5% interest rate, we can substitute the value of X into one of our previous equations.
Nico invested X - $1300 at a 5% interest rate, so:
Amount at 5% = $2000 - $1300
Amount at 5% = $700
Therefore, Nico invested $2000 at an 8% interest rate and $700 at a 5% interest rate.