Answer the following simple interest problem using the provided formula ONLY. Show your complete solution.  2. Clara has invested 10,000.00 pesos, part at 5% and the remainder at 10% simple interest. How much is invested at higher rate if the total annual interest from this investment is 950.00 pesos?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Answer the following simple interest problem using the provided formula ONLY. Show your complete solution. 

2. Clara has invested 10,000.00 pesos, part at 5% and the remainder at 10% simple interest. How much is invested at higher rate if the total annual interest from this investment is 950.00 pesos?

 

Simple Interest - only the principal earns interest.
where:
I = Pni
F= P + I
F = P + Pni
F = P(ltni)
I= interest
i= rate of interest
period
per
interest
n = number of interest period
P= principal or present worth
F = Future worth or
accumulated amount
Transcribed Image Text:Simple Interest - only the principal earns interest. where: I = Pni F= P + I F = P + Pni F = P(ltni) I= interest i= rate of interest period per interest n = number of interest period P= principal or present worth F = Future worth or accumulated amount
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