Problema Solution
Tyler has two savings accounts that his grandparents opened for him. One of the accounts pay 8% annual interest, wheres the other pays 10% annual interest. If you have $700 more invested at 10% than you invested at 8%, how much do you have invested in each account if the total amount of interest you earn in a year is $124?
Answer provided by our tutors
let 'x' represent the dollars invested at 10%, then 'x-700' represents the dollars invested at 8%
interest = principal * rate * time
we assume time = 1 (simple annual interest for 1 year)
124 = 0.1x + 0.08(x-700)
solving for 'x we have x=1000
1000-700=300
so there is $1,000 invested at 10% and $300 invested at 8%