An executive invests $26,000, some at 8% and some at 6% annual interest. If he receives an annual return of $1,800, how much is invested at each rate?

Answer 1

0.08(X) + 0.06(26000-X) = 1800

Distribute

0.08(X) + 1560 - 0.06(X) = 1800

Re-arrange

0.08(X) - 0.06(X) = 240

Subtract Like-terms

0.02(X) = 240

Divide

X = 12000

Confirm Results

12000(0.08) = 960
14000(0.06) = 840

960 + 840 = 1800