Problema Solution
You invested $7000 between two accounts paying 5% and 7% annual interest, respectively. If the total interest earned for the year was $450, how much was invested at each rate?
Answer provided by our tutors
let
x = the money invested at 5%
y = the money invested at 7%
You invested $7000 between two accounts paying 5% and 7% annual interest, respectively:
x + y = 7000
the total interest earned for the year was $450:
0.05x + 0.07y = 450
by solving the system of equations:
x + y = 7000
0.05x + 0.07y = 450
we find:
x = $2,000
y = $5,000
click here to see the step by step solution of the system of equations:
$2,000 was invested at 5% annual interest rate.
$5,000 was invested at 7% annual interest rate.