A father deposited a total amount of P88,500 on two different investments. The first investment earns a rate of simple interest 2.6 times the second investment. In 5 years, the first investment grows P92,745. In 10 years, the second investment grows P43,134. Determine the following: 1. Interest rate of the second investment, in %. 2. Amount deposited on the first investment.

SWFT Corp Partner Estates Trusts
42nd Edition
ISBN:9780357161548
Author:Raabe
Publisher:Raabe
Chapter19: Family Tax Planning
Section: Chapter Questions
Problem 27P
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SITUATION 2
A father deposited a total amount of
P88,500 on two different investments.
The first investment earns a rate of
simple interest 2.6 times the second
investment. In 5 years, the first
investment grows P92,745. In 10 years,
the second investment grows P43,134.
Determine the following:
1. Interest rate of the second
investment, in %.
2. Amount deposited on the
first investment.
Transcribed Image Text:SITUATION 2 A father deposited a total amount of P88,500 on two different investments. The first investment earns a rate of simple interest 2.6 times the second investment. In 5 years, the first investment grows P92,745. In 10 years, the second investment grows P43,134. Determine the following: 1. Interest rate of the second investment, in %. 2. Amount deposited on the first investment.
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