Question 102754: 25000 is placed in the bank, part in an account earning 10% and part in an account earning 15% interest. The annual interest paid on the 25000 is 3350. How much money is in the 10% account?
Answer by Earlsdon(6294)   (Show Source):
You can put this solution on YOUR website! Start by assigning a variable to the unknown quantity which is the amount placed in the account that earns 10%.
Let x = the amount earning 10%, then ($25,000-x) is the remainder that earns 15%. So 10% of x plus 15% of ($25,000-x) = $3,350
That is, the sum of these two interest amounts is given as $3,350
Now you can write an equation to solve for x. Change the percentages to their decimal equivalents: 10% = 0.1 and 15% = 0.15
0.1x +0.15($25,000-x) = $3,350 Simplify this and solve for x.
0.1x + $3,750 - 0.15x = $3,350 Combine like-terms.
(0,1-0.15)x + $3,750 = $3,350
-0.05x + $3,750 = $3,350 Subtract $3,750 from both sides.
-0.05x = -$400 Finally, divide both sides by -0.05
x = $8,000 This is the amount in the 10% account.
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