Problema Solution
You invested $25,000 in two accounts: one that has simple 3% interest, the other with 2% interest. If your total interest payment after one year was $600, how much was in each account after the year passed?
Answer provided by our tutors
Let
x = the money invested in an account that paid 3% simple interest per year
y = the money invested in an account that paid 2% simple interest per year
The total money invested was $25,000:
x + y = 25,000
Total interest payment after one year was $600:
0.03x + 0.02y = 600
by solving the system of equations:
x + y = 25000
0.03x + 0.02y = 600
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click here to see the system of equations solved for x and y
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we find
x = $10,000
y = $15,000
After the year passed:
First account had: 1.03*10000 = $10,300
Second account had: 1.02*15000 = $15,300