Problema Solution
You invested $5000 between two accounts paying 4% and 7% annual interest, respectively. If the total interest earned for the year was $260, how much was invested at each ratea?
Answer provided by our tutors
let
x = the money invested in the account paying 4% annual interest
y = the money invested in the account paying 7% annual interest
You invested $5000 between two accounts paying 4% and 7% annual interest, respectively:
x + y = 5000
the total interest earned for the year was $260:
0.04x + 0.07y = 250
by solving the system of equations:
x + y = 5000
0.04x + 0.07y = 260
we find:
x = $3,000
y = $2,000
click here to see the step by step solution of the system of equations:
there were $3,000 invested in the account paying 4% annual interest and $2,000 invested in the account paying 7% annual interest.