Bunuel
Lorna invests $6,000, some at a 6% annual interest rate and some at 11% annual rate. If she receives a total of $580 at the end of a year from these investments, how much was invested at the 6% interest rate?
A. $160
B. $1,600
C. $2,200
D. $4,400
E. $5,840
Weighted averageThe amounts invested at different rates sum to
\($6,000\)Let \(x\) = amount invested at \(6\)%
\((6,000-x)\) = amount invested at \(11\)%
The dollar amounts of
interest earned by each portion at each rate sum to $580. Different rates carry different weights.
Weighted average:
\(.06(x) +.11(6,000-x)=580\)
\(.06x + 660 -.11x = 580\)
\(80=.05x\)
\(x=\frac{80}{.05}=\frac{8000}{5}=1,600\)ANSWER B
Answer ChoicesStart with C) $2200
Amt invested at 6%:
\($2200\) Amt invested at 11%:
\($(6000-2200)=$3,800\)Interest earned at 6%:
\(($2200*.06)=$132\)Interest earned at 11%:
\(($3800*.11)=$418\)Total interest earned?
\($(132+418)=$550\)Too low. The 6% rate has too great a portion of the $6,000. If 11% has a greater portion of the $6,000, total interest earned will increase.
Eliminate Answers D and E.
Their portion for the 6% rate is higher than C, which is already too high. We need a number lower than C, but not by much.
Try B) $1600
Amt invested at 6%:
\($1600\)Amt invested at 11%:
\(($6000-1600)=$4400\)Interest earned at 6%:
\(($1600*.06)=$96\)Interest earned at 11%:
\(($4400*.11)=$484\)Total interest earned:
\($(96+484)=$580\) That's correct
ANSWER B