Problema Solution
felica decided to invest 18000 of her retirement fund conservatively. she invested part of this money into one account that pays 4% simple interest and part into another account that pays 3% simple interest. last year she earned 600 in interest. how much did she invest in each account?
Answer provided by our tutors
Let
x = the money invested into the account paying 4% simple interest
y = the money invested into the account paying 3% simple interest
Since the total money invested is $18,000 we have:
x + y = 18,000
The simple interest earned in 1 year is $600 means:
0.04x + 0.03y = 600
We have the following system of equations:
x + y = 18000
0.04x + 0.03y = 600
........
click here to see the system of equations solved for x and y
........
x = $6,000
y = $12,000
Felicia invested $6,000 into the account paying 4% simple interest and $12,000 into the account paying 3% simple interest.