Problema Solution
Mina invested $10,000 part at 4% simple interest and part at 5% simple interest for a period of 1 year. How much was invested in each account if the interest earned in the 5% account was $320 greater than the interest earned in the 4% account?
Answer provided by our tutors
let
x = the money invested at 4% simple interest
y = the money invested at 5% simple interest
Mina invested $10,000 part at 4% simple interest and part at 5% simple interest for a period of 1 year:
x + y = 10,000
the interest earned in the 5% account was $320 greater than the interest earned in the 4% account:
0.05x = 320 + 0.04y
by solving the system of equations:
x + y = 10000
0.05x = 320 + 0.04y
we find:
x = $8,000
y = $2,000
click here to see the step by step solution of the system of equations:
$8,000 were invested at 4% simple interest.
$2,000 were invested at 5% simple interest.