Problema Solution
A high school student was able to save $5000 by working a part-time job every summer. He invested half the money in a money market account and half the money in a stock that paid three times as much interest as the money market account. After a year he earned $250 in interest. What were the interest rates of the money market account and the stock?
Answer provided by our tutors
interest in money market = x
interest in stock = 3x
2500x + 2500(3x) = 250
10000x = 250
x = 0.025 = 2.5%
interest in stock = 2.5*3 = 7.5%