Problema Solution
An investment club placed $39,000 into two simple interest accounts. On one account, the annual simple interest rate is 9.5%. On the other, the annual simple interest rate is 3.5%. How much should be invested in each account so that both accounts earn the same annual interest?
Answer provided by our tutors
Let 'x' and 'y' stand for the amount invested in the 9.5% and 3.5% accounts respectively. Let 'a' stand for the annual interest. We can write:
x+y=39000
.095x=a
.035y=a
Using Algebrator to solve for x, y, and a, we get:
a=$997.5
x=$10500
y=$28500