Discussion Guide: (Age)

How do we solve investment problems involving system of linear equations in two variables?

Illustrative Examples 1

1. Mrs. Cruz invested half of her money at 7 % and half at 8 % per year. Her annual income
from the two investment was P 7 500. How much did she invest at each rate?

Representation
The problem is dealing with the amount invested by Mrs. Cruz at two interest rates. We
are asked to solve how much was invested at each rate so we have to represent each amount of
investment.

Let x = amount invested at 7% per year (first investment)

y = amount invested at 8% per year (second investment)

We will use a table to illustrate the annual income from her two investments.

Amount invested Interest rate Annual

income
First investment x 0.07 0.07x
Second investment y 0.08 0.08y

Equation
Since there are two variables involved, we need two equations.
Equation 1 x = y (Her total amount of money is halved so equal amounts of money
are invested at each rate)

Income from Income from

Equation 2 1st investment
+ 2nd investment = Total Income

0.07x + 0.08y = 7500

Solution
We can solve the system by substitution using equation 2:
O.O 7x+0.08 y=7500
0.07x+0.08 x=7500
0.15 x=7500
x=50,000
Solving for y, since y is equal to x then y = 50, 000.

Conclusion
Therefore, the amount invested at 7% interest is P 50, 000 and the amount invested at
8% interest is also P 50, 000.
 2. Two investments are made totaling P 8 800. For a certain year, these investments yield P
1 326 in simple interest. Part of the P 8 800 is invested at 16 % and part at 14 %. Find the
amount invested at each rate.

Representation
The problem is dealing with the two investments at different rates totaling P 8 800. We
are asked to solve how much was invested at each rate so we have to represent each
amount of investment.

Let x = amount invested at 16% per year (first investment)

y = amount invested at 14% per year (second investment)

We will use a table to illustrate the annual income from the two investments.

Amount Interest Annual

invested rate income
First investment x 0.16 0.16x
Second investment y 0.14 0.14y

Equation
Since there are two variables involved, we need two equations.

Equation 1 x + y = 8 800

Total of the two

investments

Equation 2 Income from + Income from = Total Income

1st investment 2nd investment

0.16x + 0.14y = 1 326

Solution
We can get rid of decimals in equation 2 by multiplying the equation by 100:
100(0.16 x+0.14 y=1326 )
16 x+14 y=132600
We can solve the system by elimination:
−14( x+ y=8800) −14 x−14 y=−123200
16 x+14 y=132600 16 x+14 y=132600
−14 x−14 y=−123200
+
16 x+14 y=132600
2x=9400
x=4700
Solving for y, we substitute 4700 in place of x in equation 1.
 x+ y=8800
4700+ y=8800
y=4100
Conclusion
Therefore, the amount invested at 16% interest is P 4 700 while the amount invested at
14% interest is P 4 100.

Extended Classroom Activity

Assignment: Solve the following:

1. Mike’s father is twice as old as he is. Seven years ago, the father was 7 years less than
thrice as old as Mike was. Find Mike’s present age.
2. Three years ago, Mark’s age was one year more than thrice Aaron’s. Four years from now,
Mark’s age will be 2 years more than twice Aaron’s. How old is Mark?
3. Two investments are made totaling P 15 000. Part of the P 15 000 is invested at 9 % and
part at 10 %. For a certain year, these investments yield P 1 432 in simple interest. Find
the amount invested at each rate.

Seatwork (Individual Activity) – 40 minutes

Solve the following:

1. Ruffy is 3/4 as old as Orlie. Four years ago, Ruffy was 1 year more than 1/2 as old as
Orlie. How old is each?
2. Karl is 4 years older than Danny. Eight years ago, Karl was twice as old as Danny. What
are their ages now?
3. A sum of P 20 000 is invested, part at 10 % and the remainder at 8 %. Find the amount
invested at each rate if the yearly income of the two investments is P 1 840.
4. Mercy invested part of her money at 8 % per year and twice that amount at 5 % per year.
If the returns last year in the two investments was P 4 200, how much did Mercy invest at
each rate?