Question

Two investments totaling $56,000 produce an annual income of $1400. One investment yields 4% per year, while the other yields 2% per year. How much is invested at each rate?

Answer 1

Let, one investment be x and another be 56,000-x.

Then,

Income from first investment

$= 2\% \: of \: x \\ = 0.02x$

Again,

Income from second investment

$= 4\% \: of \: (56000 - x) \\ = 2240 - 0.04x$

So,

Total income=I¹+I²

Or,

$1400 = 2240 - 0.04x + 0.02x$

Or,

$840 = 0.02x$

•°•

$x = 42000$

Again,

Another investment

$= 56000-42000 \\ = 14000$

So, the two investments are Rs. 42,000 and Rs. 14,000.