SOLUTION: Makana invested $500 in a simple interest account that had an interest rate that was 1% more than that of her friend Marlys. If Marlys earned $27 after one year from an investment

Question 1196959: Makana invested $500 in a simple interest account that had an interest rate that was 1% more than that of her friend Marlys. If Marlys earned $27 after one year from an investment of $450, how much did Makana earn in one year?
$_______?
Answer by ikleyn(52780) (Show Source): You can put this solution on YOUR website!
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Makana invested at the rate x (decimal) per year.

Marlys invested at the rate (x-0.01) per year.


Write equation for the Marlys interest

   450*(x-0.01) = 27.


From this equation

    x - 0.01 =  = 0.06.


Thus, the Marlys rate is 0.06, or 6% per year.

Hence, the Makana rate is 0.07, or 7% per year.


It means that Makana earns 0.07*500 = 35 dollars in a year from his/(her) investment of $500.    ANSWER

Solved.

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