# Interest Word Problems

Sam invested 11000 in an acct that pays 11% apr. How much additional money must be invested in an acct that pays an apr of 14% so that the total interest is equal to the interest on the two investments at the rate of 12%?

### Comments for Interest Word Problems

Average Rating     Nov 05, 2010 Rating     Interest Word Problems by: Karin This is a great problem! Let's write the numerical equation step by step from the problem. Let x = the amount of additional money needed. Sam invested 11000 in an acct that pays 11% apr. (11000 * .11) How much additional money must be invested in an acct that pays an apr of 14% +.14x so that the total interest is equal = to the interest on the two investments at the rate of 12% .12(11000 +x) Now let's put it all together. 11000(.11) + .14x = .12(11000 +x) Step 1: Compute 11000*.11 and use the distributive property. 1210 + .14x = 1320 +.12x Step 2: Get the variables on the left hand side by subtracting .12x from both sides. 1210 + 14x - .12x = 1320 + 12.x - .12x 1210 +.02x = 1320 Step 3: Get the constants on the right hand side by subtracting 1210 from both sides. 1210 - 1210 + .02x = 1320 - 1210 .02x = 110 Step 4: Divide both sides by .02 .02x/.02 = 110/.02 x = 5500 The addition amount should be 5500. Let's check: 11000(.11) + .14(5500) = .12(11000+5500) 1980 = 1980 The interest is equal for both investments. Hope this helps. Karin Need More Help With Your Algebra Studies?