SOLUTION: A high school student was able to save $7000 by working a part-time job every summer. He invested half the money in a money market account and half the money in a stock that paid t
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Question 1199237: A high school student was able to save $7000 by working a part-time job every summer. He invested half the money in a money market account and half the money in a stock that paid three times as much interest as the money market account. After a year he earned $490 in interest. What were the interest rates of the money market account and the stock?
Answer in percentages and round to one decimal place.
Answer by greenestamps(13203) (Show Source): You can put this solution on YOUR website!
let x be the interest rate for the money market
then 3x is the interest rate for the stock
Half of $7000, or $3500, invested at each rate yields $490 interest:
ANSWERS:
interest rate on money market: x = .035 = 3.5%
interest rate on stock: 3x = .105 = 10.5%
CHECK: 3500(.035)+3500(.105) = 122.5 + 367.5 = 490
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