Problema Solution
Sierra has inherited $15,000 that she wants to invest in two separate accounts, one paying 4% and one paying 3% annual interest. If the total interest earned for a year is $550, how much should she invest at each rate?
Answer provided by our tutors
let
x = the money invested at 4% annual interest
y = the money invested at 3% annual interest
x + y = 15000
total interest earned for a year is $550
4% of x + 3% of y = 550
0.04*x + 0.03*y = 550
by solving the system of equations
x + y = 15000
0.04*x + 0.03*y = 550
we find
x = $10,000
y = $5,000
she should invest $10,000 at 4% annual interest and $5,000 at 3% annual interest.