Joan Arlington has twice as much money invested at 5% simple annual interest as she does at 4%. If her yearly income does she have at each rate?
At 4%, she has
At 5%, she has
$Po @ 4%.
$2Po @ 5%.
Po*0.04*1 + 2Po*0.05*1 = $378.
.04Po + .10Po = 378
0.14Po = 378
Po = $2700. @ 4%.
Int. = 0.04*2700 = $108.
2Po = $5400 @ 5%.
Int. = 0.05*5400 = $270.
To find out Joan Arlington's yearly income at each interest rate, we need to know the amount of money she has invested at both rates.
Let's assume that Joan has x dollars invested at a 4% annual interest rate. According to the problem, she has twice as much money invested at a 5% annual interest rate, which equals 2x dollars.
To calculate the yearly income, we will use the formula for simple interest:
Simple Interest = Principal * Rate * Time
For the investment at a 4% interest rate:
Principal = x dollars
Rate = 4% (or 0.04 as a decimal)
Time = 1 year (since it's yearly income)
So, the yearly income at 4% interest can be calculated as:
Income at 4% = x dollars * 0.04
For the investment at a 5% interest rate:
Principal = 2x dollars
Rate = 5% (or 0.05 as a decimal)
Time = 1 year (since it's yearly income)
So, the yearly income at 5% interest can be calculated as:
Income at 5% = 2x dollars * 0.05
To get the answer, we need to substitute the appropriate values into the formulas and calculate the results.