Bernie has $16000 invested, part at 3% and the remainder at 5%. If the yearly interest on each investment is the same, how much interest does he receive each year?
amount invested at 3% --- x
intereste at that = .03x
amount invested at 5% ---- 16000 - x
interest at that = .05(16000-x)
they are equal, so
solve .03x = .05(16000 - x)
3x = 5(16000-x)
carry on
To find the amount of interest Bernie receives each year, we need to calculate the interest earned from each investment separately and then add them together.
Let's start by finding the interest earned from the first investment at 3%.
Step 1: Calculate the interest earned from the first investment at 3%
Interest = Principal x Rate
The principal (amount invested) is given as $16000. The interest rate is 3%, which can be written as 0.03 in decimal form.
Interest from the first investment = $16000 x 0.03
Next, let's find the interest earned from the second investment at 5%.
Step 2: Calculate the interest earned from the second investment at 5%
Since the remainder of the investment is put at 5%, we can calculate it by subtracting the amount invested at 3% from the total investment.
Amount invested at 5% = Total investment - Amount invested at 3%
Amount invested at 5% = $16000 - ($16000 at 3%)
To calculate the interest, we use the same formula as before:
Interest from the second investment = Amount invested at 5% x 0.05
Finally, we can find the total interest received each year by adding the interest earned from both investments together.
Total interest received each year = Interest from the first investment + Interest from the second investment
I'll calculate those values for you.