Problema Solution

You invested $4000 between two accounts paying 5% and 7% annual interest, respectively. If the total interest earned for the year was $260, how much was invested at each rate?

Answer provided by our tutors

Let


x = the money invested in account paying 5% annual interest


y = the money invested in account paying 7% annual interest


x + y = 4000


0.05x + 0.07y = 260

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x = $1,000


y = $3,000


$1,000 was invested in account paying 5% annual interest.


$3,000 was invested in account paying 7% annual interest.