Problema Solution

Tyler has two savings accounts that his grandparents opened for him. One of the accounts pay 7% annual interest, whereas the other pays 9% annual interest. If you have $700 more invested at 9% than you invested at 7%, how much do you have invested in each account if the total amount of interest you earn in a year is $111?

Answer provided by our tutors

let


x = the money invested in account that pays 7% annual interest

y = the money invested in account that pays 9% annual interest


you have $700 more invested at 9% than you invested at 7%


y = x + 700


the total amount of interest you earn in a year is $111


0.07x + 0.09y = 111


by solving the system of equations


y = x + 700

0.07x + 0.09y = 111


we find


x = $300


y = $1000


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300$ are invested at the 7% annual interest account.

1000$ are invested at the 9% annual interest account.