Problema Solution
A total of $15,000 is invested in 2 high yield accounts paying 4% and 5% simple interest. The annual interest is $700. How much is invested in each fund?
Answer provided by our tutors
let
x = dollars are invested in the account paying 4%
y = dollars are invested in the account paying 5%
a total of $15,000 is invested
x + y = 15000
the annual interest is $700
0.04x + 0.05y = 700
by solving the system of equations
x + y = 15000
0.04x + 0.05y = 700
we find
x = $5,000
y = $10,000
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$5,000 are invested in the 4% account.
$10,000 are invested in the 5% account.