Problema Solution

You invested $11,000 in two accounts paying 5% and 8% annual interest. If the total interest earned for year was $73, how much was invested at each rate?

Answer provided by our tutors

let


x = the money invested in the account paying 5% annual interest

y = the money invested in the account paying 8% annual interest


you invested $11,000 in two accounts paying 5% and 8% annual interest


x + y = 11000


the total interest earned for year was $73


0.05x + 0.08y = 73


by solving the system of equations


x + y = 11000

0.05x + 0.08y = 73


we get


x = 26,900


y = - 15,900


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since the total money is $11,000 and the result we got for x = 26,900 is bigger then 11,000 while the result for y = - 15,900 < 0 this problem has no solutions.


It is impossible to invest $11,000 in two accounts paying 5% and 8% annual interest and earn total interest earned of $73 for year.