Word Problems Involving
Investments
Investment type problems are a type of mixture
problem. In this type of problem we are mixing
money into different accounts. For example…...
Ron Burgandy has $15,000 to invest. He
plans to diversify his money by investing it
in two different accounts. One account
gives 11.5% interest and the other 9%
interest. If he wants to make $1562.50 in
interest in the first year, how much should
he place in each account?
BACK
Ron Burgandy has $15,000 to invest. He plans to diversify his
money by investing it in two different accounts. One account
gives 11.5% interest and the other 9% interest. If he wants to
make $1562.50 in interest in the first year, how much should he
place in each account?
Principal Rate
First
Acct.
Second
Acct.
Total
x
15000 - x
15,000
Interest
.115
.115x
.09
.09(15000-x)
1562.50
The interest of the 2 accounts added together equal the total.
BACK
.115x  .0915000 x  1562.50
.115 x  1350  .09 x  1562 .50
.025 x  1350  1562 .50
.025 x  212 .50
x  8500
15000  8500  6500
Ron invested $8500 in the 11.5% acct. and $6500 in
the 9% acct.
BACK
Chazz Michael Michaels invested $12,500 in two
simple interest accounts. One account earns annual
simple interest of 7% while the other earns 6%. How
much was invested at each rate if each account earned
the same interest? Round your answer to the nearest
dollar.
7%
6%
Principle
x
12500- x
Rate
.07
.06
Interest
.07x
.06(12500-x)
12,500
.07x  .0612500 x 
To write the equation, the original problem
states that the amount of interest is equal.
BACK
.07x  .0612500 x 
.07 x  750  .06 x
.13 x  750
x  5769 .23  $5769
Word Problems Involving
Investments