Algebra Word Problems

Lesson 8
Worksheet 8
Algebra Word Problems
Involving
Interest

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Algebra Word Problems – Lesson 8 - Worksheet 8 - Algebra Word Problems
Involving Interest

Problem 1) You make two investments into two accounts. One pays 9% and
one pays 6% interest. If you invest $15,000 and the interest after one year is
$1110, how much did you put in each investment?

Problem 2) Tom invested $8,000 in two investments, part of it at 6.5% and the
rest at 4.5%. if the total interest earned after 2 years was $880, how much was
put in each investment?

Problem 3) Suppose you invest twice as much money in stocks at 6% interest

as you invest in bonds paying 3%. If the total interest earned after 1 year was
$1050, how much did you put in each investment?

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Problem 4) Suppose you have $1,500 less invested at 4% as you have invested
at 8%. If the total interest earned after 1 year is $720, how much do you have in
each investment?

Problem 5) You have $5,000 invested at 6%. How much more money should
you invest at 9% to have a yearly interest income of $1380?

Problem 6) You make two investments into two accounts. One pays 4%
interest and one pays 6% interest. If you invest $10,000 total, with the larger
amount placed in the account with 6% interest, and the interest after one year is
$520, how much did you put in each investment?

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Problem 7) Jim invested $6,000 in two investments, part of it at 4.5% and the
rest at 3.5%. If the total interest earned after 3 years was $750, how much was
put in each investment?

Problem 8) Suppose you invest three times as much in stocks at 7% as you

invest in bonds paying 4%. if the total interest earned after 1 year was $750, how
much did you put in each investment?

Problem 9) Suppose you have $2,500 less invested at 3% as you have invested
at 9%. If the total interest earned after 1 year is $1125, how much do you have in
each investment?

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Problem 10) You have $8,000 invested at 6%. How much more money should
you invest at 10% to have a yearly interest income of $2080?

Problem 11) You make two investments into two accounts. One pays 7% and
one pays 4% interest. If you invest $8,000, with the larger amount put in the
account with 7% interest, and the interest after one year is $500, how much did
you put in each investment?

Problem 12) Tom invested $4,000 in two investments, part of it at 8.5% and
the rest at 4.5%. if the total interest earned after 2 years was $600, how much
was put in each investment?

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Problem 13) Suppose you invest four times as much money in stocks at 5% as
you invest in bonds paying 4%. if the total interest earned after 1 year was $480,
how much did you put in each investment?

Problem 14) Suppose you have $3,500 less invested at 2% as you have
invested at 6%. If the total interest earned after 2 years is $1060, how much do
you have in each investment?

Problem 15) You have $6,000 invested at 9%. How much more money should
you invest at 12% to have a yearly interest income of $1980?

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Problem 16) You make two investments into two accounts. One pays 12% and
one pays 8% interest. If you invest $5,000, with the larger amount put into the
account with 12% interest, and the interest after one year is $560, how much did
you put in each investment?

Problem 17) Tom invested $9,000 in two investments, part of it at 5.5% and
the rest at 4.5%. If the total interest earned after 2 years was $910, how much
was put in each investment?

Problem 18) Suppose you invest five times as much in stocks at 8% as you
invest in bonds paying 4%. If the total interest earned after 1 year was $880, how
much did you put in each investment?

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Problem 19) Suppose you have $4,500 less invested at 3% as you have
invested at 9%. If the total interest earned after 2 years is $1650, how much do
you have in each investment?

Problem 20) You have $9,000 invested at 15%. How much more money
should you invest at 24% to have a yearly interest income of $5190?

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Answers - Algebra Word Problems – Lesson 8 - Worksheet 8 - Algebra Word
Problems Involving Interest

Problem 1) You make investments into two accounts. One pays 9% interest,
while the other pays 6% interest. If you invest $15,000, with the smaller amount
put into the account with 9% interest, and the interest after one year is $1110,
how much did you put in each investment?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 9% account and 15000 − 𝑥
represent the investment in the 6% account. In this problem 𝑡 = 1. Write the
following equation:

(9%)(𝑥) + (6%)(15000 − 𝑥) = 1110

(0.09)𝑥 + (0.06)(15000 − 𝑥) = 1110

0.09𝑥 + 900 − 0.06𝑥 = 1110

0.03𝑥 + 900 = 1110

0.03𝑥 = 210

𝑥 = 7000

If 𝑥 = 7000, then 15000 − 7000 = 8000

Answer: $7000 at 9%, $8000 at 6%

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Problem 2) Tom invested $8,000 in two investments, part of it at 6.5% and the
rest at 4.5%. If the total interest earned after 2 years was $880, how much was
put in each investment?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 6.5% account and 8000 − 𝑥
represent the investment in the 4.5% account. In this problem 𝑡 = 2. Write the
following equation:

(6.5%)(𝑥)(2) + (4.5%)(8000 − 𝑥)(2) = 880

(0.13)𝑥 + (0.09)(8000 − 𝑥) = 880

0.13𝑥 + 720 − 0.09𝑥 = 880

0.04𝑥 + 720 = 880

0.04𝑥 = 160

𝑥 = 4000

If 𝑥 = 4000, then 8000 − 4000 = 4000

Answer: $4000 at 6.5%, $4000 at 4.5%

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Problem 3) Suppose you invest twice as much money in stocks at 6% interest
as you invest in bonds paying 3%. If the total interest earned after 1 year was
$1050, how much did you put in each investment?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 3% account and 2𝑥 represent the
investment in the 6% account. In this problem 𝑡 = 1. Write the following
equation:

(6%)(2𝑥)(1) + (3%)(𝑥)(1) = 1050

(0.12)𝑥 + (0.03)𝑥 = 1050

0.15𝑥 = 1050

𝑥 = 7000

If 𝑥 = 7000, then 2𝑥 = 2(7000) = 14000

Answer: $14000 at 6%, $7000 at 3%

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Problem 4) Suppose you have $1,500 less invested at 4% as you have invested
at 8%. If the total interest earned after 1 year is $720, how much do you have in
each investment?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 8% account and 𝑥 − 1500 represent
the investment in the 4% account. In this problem 𝑡 = 1. Write the following
equation:

(8%)(𝑥)(1) + (4%)(𝑥 − 1500)(1) = 720

(0.08)𝑥 + (0.04)(𝑥 − 1500) = 720

0.08𝑥 + 0.04𝑥 − 60 = 720

0.12𝑥 − 60 = 720

0.12𝑥 = 780

𝑥 = 6500

If 𝑥 = 6500, then 𝑥 − 1500 = 6500 − 1500 = 5000

Answer: $6500 at 8%, $5000 at 4%

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Problem 5) You have $5,000 invested at 6%. How much more money should
you invest at 9% to have a yearly interest income of $1380?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 9% account. In this problem 𝑡 = 1.
Write the following equation:

(6%)(5000)(1) + (9%)(𝑥)(1) = 1380

300 + (0.09)(𝑥) = 1380

0.09𝑥 = 1080

𝑥 = 12000

Answer: $12000

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Problem 6) You make two investments into two accounts. One pays 4% and
one pays 6% interest. If you invest $10,000, with the larger amount put into the
account with 6% interest, and the interest after one year is $520, how much did
you put in each investment?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 4% account and 10000 − 𝑥
represent the investment in the 6% account. In this problem 𝑡 = 1. Write the
following equation:

(4%)(𝑥) + (6%)(10000 − 𝑥) = 520

(0.04)𝑥 + (0.06)(10000 − 𝑥) = 520

0.04𝑥 + 600 − 0.06𝑥 = 520

−0.02𝑥 + 600 = 520

−0.02𝑥 = −80

𝑥 = 4000

If 𝑥 = 4000, then 10000 − 4000 = 6000

Answer: $4000 at 4%, $6000 at 6%

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Problem 7) Jim invested $6,000 in two investments, part of it at 4.5% and the
rest at 3.5%. If the total interest earned after 3 years was $750, how much was
put in each investment?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 4.5% account and 6000 − 𝑥
represent the investment in the 3.5% account. In this problem 𝑡 = 3. Write the
following equation:

(4.5%)(𝑥)(3) + (3.5%)(6000 − 𝑥)(3) = 750

(0.135)𝑥 + (0.105)(6000 − 𝑥) = 750

0.135𝑥 + 630 − 0.105𝑥 = 750

0.03𝑥 + 630 = 750

0.03𝑥 = 120

𝑥 = 4000

If 𝑥 = 4000, then 6000 − 4000 = 2000

Answer: $4000 at 4.5%, $2000 at 3.5%

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Problem 8) Suppose you invest three times as much in stocks at 7% as you
invest in bonds paying 4%. If the total interest earned after 1 year was $750, how
much did you put in each investment?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 4% account and 3𝑥 represent the
investment in the 7% account. In this problem 𝑡 = 1. Write the following
equation:

(7%)(3𝑥)(1) + (4%)(𝑥)(1) = 750

(0.21)𝑥 + (0.04)(𝑥) = 750

0.25𝑥 = 750

𝑥 = 3000

If 𝑥 = 3000, then 3𝑥 = 3(3000) = 9000

Answer: $9000 at 7%, $3000 at 4%

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Problem 9) Suppose you have $2,500 less invested at 3% as you have invested
at 9%. The total interest earned after 1 year is $1125, how much do you have in
each investment?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 9% account and 𝑥 − 2500 represent
the investment in the 3% account. In this problem 𝑡 = 1. Write the following
equation:

(9%)(𝑥)(1) + (3%)(𝑥 − 2500)(1) = 1125

(0.09)𝑥 + (0.03)(𝑥 − 2500) = 1125

0.09𝑥 + 0.03𝑥 − 75 = 1125

0.12𝑥 − 75 = 1125

0.12𝑥 = 1200

𝑥 = 10000

If 𝑥 = 10000, then 𝑥 − 2500 = 10000 − 2500 = 7500

Answer: $10000 at 9%, $7500 at 3%

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Problem 10) You have $8,000 invested at 6%. How much more money should
you invest at 10% to have a yearly interest income of $2080?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 10% account. In this problem 𝑡 = 1.
Write the following equation:

(6%)(8000)(1) + (10%)(𝑥)(1) = 2080

(0.06)(8000)(1) + (0.10)(𝑥)(1) = 2080

480 + (0.10)(𝑥) = 2080

0.10𝑥 = 1600

𝑥 = 16000

Answer: $16000

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Problem 11) You make two investments into two accounts. One pays 7% and
one pays 4% interest. If you invest $8,000, with the larger amount put into the
account with 7% interest, and the interest after one year is $500, how much did
you put in each investment?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 7% account and 8000 − 𝑥 represent
the investment in the 4% account. In this problem 𝑡 = 1. Write the following
equation:

(7%)(𝑥) + (4%)(8000 − 𝑥) = 500

(0.07)𝑥 + (0.04)(8000 − 𝑥) = 500

0.07𝑥 + 320 − 0.04𝑥 = 500

0.03𝑥 + 320 = 500

0.03𝑥 = 180

𝑥 = 6000

If 𝑥 = 6000, then 8000 − 6000 = 2000

Answer: $6000 at 7%, $2000 at 4%

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Problem 12) Tom invested $4,000 in two investments, part at 8.5% and the
rest at 4.5%. If the total interest earned after 2 years was $600, how much was
put in each investment?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 8.5% account and 4000 − 𝑥
represent the investment in the 4.5% account. In this problem 𝑡 = 2. Write the
following equation:

(8.5%)(𝑥)(2) + (4.5%)(4000 − 𝑥)(2) = 600

(0.17)𝑥 + (0.09)(4000 − 𝑥) = 600

0.17𝑥 + 360 − 0.09𝑥 = 600

0.08𝑥 + 360 = 600

0.08𝑥 = 240

𝑥 = 3000

If 𝑥 = 3000, then 4000 − 3000 = 1000

Answer: $3000 at 8.5%, $1000 at 4.5%

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Problem 13) Suppose you invest four times as much in stocks at 5% as you
invest in bonds paying 4%. If the total interest earned after 1 year was $480, how
much did you put in each investment?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 4% account and 4𝑥 represent the
investment in the 5% account. In this problem 𝑡 = 1. Write the following
equation:

(5%)(4𝑥)(1) + (4%)(𝑥)(1) = 480

(0.20)𝑥 + (0.04)(𝑥) = 480

0.24𝑥 = 480

𝑥 = 2000

If 𝑥 = 2000, then 4𝑥 = 4(2000) = 8000

Answer: $8000 at 5%, $2000 at 4%

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Problem 14) Suppose you have $3,500 less invested at 2% as you have
invested at 6%. If the total interest earned after 2 years is $1060, how much do
you have in each investment?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 6% account and 𝑥 − 3500 represent
the investment in the 2% account. In this problem 𝑡 = 2. Write the following
equation:

(6%)(𝑥)(2) + (2%)(𝑥 − 3500)(2) = 1060

(0.12)𝑥 + (0.04)(𝑥 − 3500) = 1060

0.12𝑥 + 0.04𝑥 − 140 = 1060

0.16𝑥 − 140 = 1060

0.16𝑥 = 1200

𝑥 = 7500

If 𝑥 = 7500, then 𝑥 − 3500 = 7500 − 3500 = 4000

Answer: $7500 at 6%, $4000 at 2%

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Problem 15) You have $6,000 invested at 9%. How much more money should
you invest at 12% to have a yearly interest income of $1980?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 12% account. In this problem 𝑡 = 1.
Write the following equation:

(9%)(6000)(1) + (12%)(𝑥)(1) = 1980

540 + (0.12)(𝑥) = 1980

0.12𝑥 = 1440

𝑥 = 12000

Answer: $12000

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Problem 16) You make two investments into two accounts. One pays 12% and
one pays 8% interest. If you invest $5,000, with the larger amount put into the
account with 12% interest, and the interest after one year is $560, how much did
you put in each investment?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 12% account and 5000 − 𝑥
represent the investment in the 8% account. In this problem 𝑡 = 1. Write the
following equation:

(12%)(𝑥) + (8%)(5000 − 𝑥) = 560

(0.12)𝑥 + (0.08)(5000 − 𝑥) = 560

0.12𝑥 + 400 − 0.08𝑥 = 560

0.04𝑥 + 400 = 560

0.04𝑥 = 160

𝑥 = 4000

If 𝑥 = 4000, then 5000 − 4000 = 1000

Answer: $4000 at 12%, $1000 at 8%

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Problem 17) Tom invested $9,000 in two investments, part of it at 5.5% and
the rest at 4.5%. If the total interest earned after 2 years was $910, how much
was put in each investment?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 5.5% account and 9000 − 𝑥
represent the investment in the 4.5% account. In this problem 𝑡 = 2. Write the
following equation:

(5.5%)(𝑥)(2) + (4.5%)(9000 − 𝑥)(2) = 910

(0.11)𝑥 + (0.09)(9000 − 𝑥) = 910

0.11𝑥 + 810 − 0.09𝑥 = 910

0.02𝑥 + 810 = 910

0.02𝑥 = 100

𝑥 = 5000

If 𝑥 = 5000, then 9000 − 5000 = 4000

Answer: $5000 at 5.5%, $4000 at 4.5%

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Problem 18) Suppose you invest five times as much in stocks at 8% as you
invest in bonds paying 4%. If the total interest earned after 1 year was $880, how
much did you put in each investment?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 4% account and 5𝑥 represent the
investment in the 8% account. In this problem 𝑡 = 1. Write the following
equation:

(8%)(5𝑥)(1) + (4%)(𝑥)(1) = 880

(0.40)𝑥 + (0.04)(𝑥) = 880

0.44𝑥 = 880

𝑥 = 2000

If 𝑥 = 2000, then 5𝑥 = 5(2000) = 10000

Answer: $10000 at 8%, $2000 at 4%

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Problem 19) Suppose you have $4,500 less invested at 3% as you have
invested at 9%. The total interest earned after 2 years is $1650, how much do
you have in each investment?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 9% account and 𝑥 − 4500 represent
the investment in the 3% account. In this problem 𝑡 = 2. Write the following
equation:

(9%)(𝑥)(2) + (3%)(𝑥 − 4500)(2) = 1650

(0.18)𝑥 + (0.06)(𝑥 − 4500) = 1650

0.18𝑥 + 0.06𝑥 − 270 = 1650

0.24𝑥 = 1920

𝑥 = 8000

If 𝑥 = 8000, then 𝑥 − 4500 = 8000 − 4500 = 3500

Answer: $8000 at 9%, $3500 at 3%

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Problem 20) You have $9,000 invested at 15%. How much more money
should you invest at 24% to have a yearly interest income of $5190?

Solution:

We calculate interest on accounts using the formula 𝐼 = 𝑝𝑟𝑡, where 𝐼 is the

interest, 𝑝 is the amount you invest, 𝑟 is the interest rate and 𝑡 is the time in
years. Let 𝑥 represent the investment in the 24% account. In this problem 𝑡 = 1.
Write the following equation:

(15%)(9000)(1) + (24%)(𝑥)(1) = 5190

1350 + (0.24)(𝑥) = 5190

0.24𝑥 = 3840

𝑥 = 16000

Answer: $16000

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