Problema Solution

You invested $7000 in two accounts paying 8% and 6% annual interest, respectively. If the total interest earned for the year was $454, how much was invested at each rate?

Answer provided by our tutors

let


x = the money invested at 8% annual interest

y = the money invested at 6% annual interest


You invested $7000 in two accounts


x + y = 7000


the total interest earned for the year was $454


0.08x + 0.06y = 454


by solving the system of equations


x + y = 7000

0.08x + 0.06y = 454


we find


x = $1,700


y = $5,300


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$1,700 invested at a 8% annual interest.

$5,300 invested at a 6% annual interest.