Problema Solution
Tim has a total of $40000 invested in two accounts. One account pays 5% interest and the other pays 8% interest. How much does he have invested in each account if his total interest for a year is $284?
Answer provided by our tutors
let
x = the money invested in an account that earns 5%
y = the money invested in an account that earns 8%
Tim has a total of $40000 invested in two account
x + y = 40000
the total interest for a year is $2840
0.05x + 0.08y = 2840
by solving the system of equations
x + y = 40000
0.05x + 0.08y = 2840
we find
x = $12,000
y = $28,000
click here to see the step by step solution of the system of equations
Tim invested $12,000 in the 5% account and $28,000 in the 8% account.