If you invest $2500 for one year, part at 8% and part at 12%.....how much was invested at each percentage rate if they both earned the same amount of interest?
To find out how much was invested at each percentage rate, we need to set up an equation using the given information.
Let's say the amount invested at 8% is x dollars, and the amount invested at 12% is (2500 - x) dollars (since the total investment is $2500).
Now, we know that the interest earned is the same for both investments. So, the interest earned on the amount invested at 8% can be calculated as x * 0.08 (8% written as a decimal). Similarly, the interest earned on the amount invested at 12% is (2500 - x) * 0.12.
Since the interest earned is the same, we can set up the equation:
x * 0.08 = (2500 - x) * 0.12
To solve this equation:
0.08x = 0.12(2500 - x)
0.08x = 300 - 0.12x
0.08x + 0.12x = 300
0.2x = 300
x = 300 / 0.2
x = 1500
Therefore, $1500 was invested at 8% (x dollars), and the remaining $1000 (2500 - x) was invested at 12%.