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How to solve an application problem using a system of equations?
A sum of $4000 is to be invested in 2 portions, on at 4%, the other at 6%. If the interest earned with the portion at 4% exceeds the interest earned by the portion at 6% by $40, how much is invested at each rate? How to solve an investment application problem using a system of equations?
How to solve word problems that involve investments?
These lessons help Algebra students learn how to solve word problems that involve investments. The following figure gives the Interest Formulas for Simple Interest, Compounded Interest, and Continuously Compounded Interest. Scroll down the page for examples and solutions of using the formulas to solve investment word problems.
How are linear equations used in investment math?
When working with investment math problems, we are usually asked to calculate amounts earned by interest on original principal amounts. This example we're going to be dealing with linear equations in a Investment problem.
Last Update: Oct 2021
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