<p>Mr. Smith had $2000 to invest. He invested part of it at 5% per year and the remainder at 4% per year. After one year, his investment grew to $2095. how much of the original investment was the 5% rate?</p>
<p>A) $500
B) $750
C) $1,000
D) $1,250
E) $1,500</p>
<p>The answer is E. (just wondering....was that an sat question?)</p>
<p>yea....i got it from an SAT prep. book</p>
<p>It's E because (1500 * 1.05) + (500 * 1.04) = 2095
Or, if you don't want to work backwards, you can let the 5% amount equal x and the other amount equal 2000-x. then you would have
(1.05x)+(1.04(2000-x)) = 2095
(1.05x)+(-1.04x + 2080) = 2095
.01x = 15
x=1500</p>