Problema Solution

You invested $7000 in two accounts paying 4% and 9% annual interest, respectively. If the total interest earned for the year was $430, how much was invested at each rate?

Answer provided by our tutors

Let

x = the money invested at 4% annual interest

y = the money invested at 9% annual interest

You invested $7000 in two accounts:

x + y = 7000

The total interest earned for the year was $430:

0.04x + 0.09y = 430

We have the following system of equations:

x + y = 7000

0.04x + 0.09y = 430

........

click here to see the system of equations solved for x and y

........

x = $4,000

y = $3,000

$4,000 were invested at 4% annual interest.

$3,000 were invested at 9% annual interest.