Question

Linda Smaoke invests a total of $10,000 in two savings accounts. One account pays 5% interest, and the other, 6%. Find the amount placed in each account if the accounts receive a total of $540 in interest after 1 year. Use interest = principal x rate x time.

The amount of $___ was invested at a 5% interest rate and $____ was invested at a 6% interest rate.

Answer 1

Okay, here are the steps to solve this problem:

1) Find the total interest earned after 1 year = $540

2) Interest = Principal x Rate x Time (using the given information)

3) So, $540 = (amount in 5% account) x 0.05 x 1 + (amount in 6% account) x 0.06 x 1

4) Solve the left side for the two unknown account amounts:

$540 = 0.05x + 0.06y (where x is 5% account amount and y is 6% account amount)

5) Solve the equation for x and y:

x = $7,800 (amount in 5% account)

y = $2,200 (amount in 6% account)

So the final answers are:

The amount of $7,800 was invested at a 5% interest rate

and $2,200 was invested at a 6% interest rate.

Let me know if you have any other questions!