Solving a mathematical

problem
Student - Areg Arshamyan
Date 09.16.2021
 The main problem(1D-9)
• At the start of 2010 Karim had 5000$ to invest. He decided to invest part
of the money in a savings account that offered 1.5% simple interest per
year. He added 1000$ to this amount and fixed it for 10 years in bonds
that offered 2.5% compound interest every year. The rest of the money he
inested in shares.
• A- After one year the money invested in shares made a loss of 1%. Given
that the total amount of money invested increased 75$,determine how
much money Karim invested in each .
Savings simple – $x $ 1.015x
1.5%
Bonds compound
2.5%
$ x+1000$ $ 1.025(x+1000) How to solve
Share $ 4000-2x $ 0.99(4000-2x)

• First
  step – Find how much did Karim invested in each
• Karim invested $ X in savings , then $(x+1000) in bonds and
• $ (4000-2x) (why ? Because 5000-(x+(x+1000))=4000-2x) . Using simple
interest formula(PV(1+n )  $75=0,015(x)+0.025(x+1000)-0.01(4000-
2x)  90=0.06x  x=1500 so $1500 in savings , $2500 in bonds and
$1000 in shares .
 Part 2
• B- At the end of the first year Karim deciced to sell the shares at their
current value and reinvest the money in the savings account. Evaluate the
total value of his investments at the end of 2020
 Now 1 year later

Savings simple – 1.5% $ x $ 1.015x

Bonds compound
2.5%
$ x+1000$ $ 1.025(x+1000)
How to solve
Share $ 4000-2x $ 0.99(4000-2x)

•  Now Karim is investing $1500 in savings for 10 years, $990 in savings for
9 years and $2500 in bond for 10 years so  1500+10(0.015)
(1500)+990+9(0.015)(990)+2500=6048.86 so $6049 to the neaest dollar.
 Part 3
• Evaluate how much more money he would have made if he had divided
up the $5000 equally between the savings account and bonds at the very
start?
Savings simple – $x $ 1.015x
1.5%
Bonds compound
2.5%
$ x+1000$ $ 1.025(x+1000) How to solve
Share $ 4000-2x $ 0.99(4000-2x)

• 2500+2500+10(0.015)(2500)-6049
  = $26
• So the answer is $26