Question

a student invested $5000 in two different savings accounts. The first account pays an annula interest rate of 3%. The second account pays an annual interest rate 4% At the end of the year, she earned $185 in interest. how much money did she invest in each account

Answer 1

solution

You use this formula to get the amount invested in each account

Let the amount invested in the first account be p, then the amount invested in the second account is $5000-p

This gives us

P(1.03)+($5000-p)1.04=$5000+$185

1.03p+$5200-1.04p=$5185

$5200-$5185=0.01p

$15=0.01p

P=$15/0.01

P=$1,500

Therefore

In the first account the student invested amount $1,500 and in the second account, the student invested amount $3500