Problema Solution
A high school student was able to save $4000 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 $200 in interest. What were the interest rates of the money market account and the stock?
Answer provided by our tutors
interest + interest = interest
r*2000 + 3r*2000 = 200 dollars
8000r = 200
r = 0.025= 2.5%
3r = 3*0.025
3r =0.075
=7.05%