Age – Value – Interest Problems – Interest Problems

Investment Word Problems

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Students learn to solve "interest" word problems, such as the following. Pam invested $5000. She earned 14% on part of her investment and 6% on the rest. If she earned a total of $396 in interest for the year, how much did she invest at each rate? Note that this problem requires a chart to organize the information. The chart is based on the interest formula, which states that the amount invested times the rate of interest = interest earned. The chart is then used to set up the equation.
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