Problema Solution
John has $10,000 to invest. He invests part of it in an account that earns 10% interest. The rest is invested in an account that earns 7% interest. The total interest earned after 1 year from the two accounts if $775. How much money did John invest in each account? Write let statements for your variable(s), then write an equation to solve. Write your answer in a complete sentence. (A guess and check table might help you write the equation. This is simple interest - formula: I=prt)
Answer provided by our tutors
let
x = the money invested in an account that earns 10%
y = the money invested in an account that earns 7%
John has $10,000 to invest
x + y = 10000
the total interest earned after 1 year from the two accounts if $775
the interest from the 10% account + the interest from the 7% = the total interest
x*0.10*1 + y*0.07*1 = 775
by solving the system of equations
x + y = 10000
0.10x + 0.07y = 775
we find
x = $2,500
y = $7,500
click here to see the step by step solution of the system of equations
John invested $2,500 in an account that earns 10% interest and $7,500 in an account that earns 7% interest.