Problema Solution
Tyler has two savings accounts that his grandparents opened for him. The two accounts pay 10% and 12% in annual interest; there is $500 more in the account that pays 12% than there is in the other account. If the total interest for a year is $214, how much money does he have to each account?
Answer provided by our tutors
let 'x' represent the amount earning 10%, then 'x+500' represents the amount earning 12%
interest = principal * rate * time
we assume time is equal to 1
214 = 0.10x + 0.12(x+500)
solving for 'x' we have x=700
700+500 = 1200
Tyler has $700 earning 10% and $1,200 earning 12%