SOLUTION: In investing $5,650 of a couple's money, a financial planner put some of it into a savings account paying 4% annual simple interest. The rest was invested in a riskier mini-mall de
Question 1184068: In investing $5,650 of a couple's money, a financial planner put some of it into a savings account paying 4% annual simple interest. The rest was invested in a riskier mini-mall development plan paying 10% annual simple interest. The combined interest earned for the first year was $445. How much money was invested at each rate?
You can put this solution on YOUR website! Here's how to solve this problem:
**Let:**
* 'x' be the amount invested in the savings account at 4% interest.
* 'y' be the amount invested in the mini-mall development at 10% interest.
**Set up the equations:**
* **Equation 1 (Total investment):** x + y = 5650
* **Equation 2 (Total interest):** 0.04x + 0.10y = 445
**Solve the equations:**
One way to solve this is using substitution:
1. **Solve Equation 1 for x:** x = 5650 - y
2. **Substitute this value of x into Equation 2:**
0.04(5650 - y) + 0.10y = 445
3. **Simplify and solve for y:**
226 - 0.04y + 0.10y = 445
0.06y = 219
y = 3650
4. **Substitute the value of y back into Equation 1 to find x:**
x + 3650 = 5650
x = 2000
**Answer:**
* $2000 was invested in the savings account at 4% interest.
* $3650 was invested in the mini-mall development at 10% interest.
