Answered

Welcome to Westonci.ca, where finding answers to your questions is made simple by our community of experts. Discover in-depth solutions to your questions from a wide range of experts on our user-friendly Q&A platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

You win $10 000 in a Best Math Student competition. Being a generous person, you decide to invest the money in two local businesses to help them get off the ground. The businesses are Paul’s Paper and Tiffany’s Tyres. They offer the following annual interest rates return to encourage your investment;

PP – 10% p.a.

TT – 5% p.a.

The investment's combined return is $620 after one year. How much was invested in each company?

Sagot :

fichoh

The amount invested in each company is :

  • Amount invested in PP = $2400
  • Amount invested in TT = $(10000 - 2400) = $7600

Using the simple interest relation:

Simple interest = principal × rate × time

Total amount = 10000

Let :

principal invested in PP = r

HENCE, amount invested in TT = 10000 - r

Total interest earned on both investments = $620

PP investment return + TT investment return = 620

(r × 10% × 1) + (10000 - r × 5% × 1) = 620

0.1r + 500 - 0.05r = 620

0.05r = 620 - 500

0.05r = 120

r = 120 / 0.05

r = 2400

Hence,

Amount invested in PP = $2400

Amount invested in TT = $(10000 - 2400) = $7600

Learn more : https://brainly.com/question/20014745?referrer=searchResults

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. We appreciate your time. Please come back anytime for the latest information and answers to your questions. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.