Problema Solution

Bob invested $9000 in two accounts, some of it at 4% simple interest, and the rest in an account earning 6% simple interest. How much did he invest in each account if he earned $275 interest after 1 year?

Answer provided by our tutors

let


x = the money invested at the 4% simple interest account, x>0

y = the money invested at the 6% simple interest account, y>0


Bob invested $9000 in two accounts


x + y = 9000


he earned $275 interest after 1 year


0.04*x + 0.06*y = 275


by solving the system of equations


x + y = 9000

0.04*x + 0.06*y = 275


we find


x = 13250


y = - 4250


the system doesn't have positive solutions for both x and y this means that it is impossible that Bob earned from the two accounts.


The scenario explained in the problem is possible if Bob earned 4% from $13,250 (the first account) and lost 6% from $4,250 (the second account).