SOLUTION: An amount of money invested for 1 year in a savings account will earn $1,600. That same amount of money invested in a mini-mall development will earn $5,600 interest in a year, bec

Question 1073984: An amount of money invested for 1 year in a savings account will earn $1,600. That same amount of money invested in a mini-mall development will earn $5,600 interest in a year, because the interest paid is 10% more than that paid by the savings account. Find the rate of interest paid by each investment.
Answer by addingup(3677) (Show Source): You can put this solution on YOUR website!
Let the amount be x and the interest y
xy = 1,600
x(y+0.10) = 5,600
(1,600/y)(y+0.10)= 5,600
y = 1/25
y = 0.04
So one account earns 4% and the other 14%
---------------------------------
Check:
1,600/0.04 = 40,000 This is how much money is invested.
the next should also give us 40,000 because the same amount is invested:
5,600/0.14 = 40,000
My answer is correct.
:
John
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