Problema Solution
Use a system of equations to solve the following problem.
An investor decides to invest some cash in an account paying 7%
7
%
annual interest, and to put the rest in a stock fund that ends up earning 13%
13
%
over the course of a year. The investor puts $100
$
100
more in the first account than in the stock fund, and at the end of the year finds the total interest from the two investments was $990
$
990
. How much money was invested at each of the two rates? Round to the nearest integer.
Answer provided by our tutors
Let
x = the money invested in account paying 7% annual interest
y = the money invested in stock fund that pays 13% annual interest
We have the following system of equations:
x = y + 100
0.07x + 0.13y = 990
........
click here to see the system of equations solved for x and y
........
x = $5,015
y = $4,915
$5,015 is invested in the first account and $4,915 is invested in the stock fund.