Problema Solution
Neal invested $5,200 into two different types of accounts. The first account has an annual interest rate of 4% and the second account has an annual interest rate of 2.7%. If the total interest accrued for the year was $192.40, how did Neal place into the account with an interest rate of 2.7%?
Answer provided by our tutors
Let
x = the money invested at 2.7% annual interest rate
5,200 - x = the money invested at 4% annual interest rate
The total interest earned for the year was $192.40 means:
0.04(5200 - x) + 0.027x = 192.40
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click here to see the equation solved for x
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x = $1,200
Neal invested $1,200 into the account that has an annual interest rate of 2.7%.