Question

I really need your help in solving this problem. I really appreciate your time and efforts. Here is the question:

An amount of money invested for 1 year in a savings account will earn $ 1,500. The same amount of money invested in a mini-mall development will earn $6,500 interest in a year, because the interest paid is 10% more than that paid by the savings account. Find the rate of interest paid by each investment?

Answer 1

If the savings account pays x%, then

(x+10)/x = 65/15
x = 3

check:
.03m = 1500
m = 50000
So, $50K was invested
.13(50000) = 6500

Answer 2

Outstanding work Steve, thank you so much!

Yours,

JC