Terry Edwards invested $3000 for two years, part at 3.5% simple interest and the rest at 2.5% simple interest. After two years she earned a total interest of $190. How much was invested at each rate?
x at 3.5%, so the rest (3000-x) at 2.5%
Now just add up the interest:
.035x + .025(3000-x) = 190
To solve this problem, we need to set up a system of equations based on the given information.
Let's assume that Terry Edwards invested x dollars at 3.5% interest and (3000 - x) dollars at 2.5% interest.
The formula for calculating simple interest is: Interest = Principal * Rate * Time
For the first amount invested at 3.5% interest, the interest earned after two years can be calculated as:
Interest1 = x * 0.035 * 2
Similarly, for the second amount invested at 2.5% interest, the interest earned after two years can be calculated as:
Interest2 = (3000 - x) * 0.025 * 2
According to the given information, the total interest earned is $190:
Interest1 + Interest2 = 190
Now we can set up the equation:
(x * 0.035 * 2) + ((3000 - x) * 0.025 * 2) = 190
Let's solve this equation to find the value of x, which represents the amount invested at 3.5% interest:
0.07x + 0.05(3000 - x) = 190
0.07x + 150 - 0.05x = 190
0.02x = 40
x = 40 / 0.02
x = 2000
Therefore, Terry Edwards invested $2000 at 3.5% interest and ($3000 - $2000) = $1000 at 2.5% interest.