Problema Solution

Raul invests $1500 into two savings accounts, one earning 4% annual interest and the other earning 6% annual interest. At the end of one year, Raul has earned $72 in interest. How much did he invest at each rate.

Answer provided by our tutors

let


x = the money invested at 4% annual interest

y = the money invested at 6% annual interest


Raul invests $1500 into two savings accounts


x + y = 1500


At the end of one year, Raul has earned $72 in interest


0.04x + 0.06y = 72


by solving the system of equations


x + y = 1500

0.04x + 0.06y = 72


we find


x = $900


y = $600


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Raul invested $900 at 4% and $600 at 6% interest rate.