SOLUTION: hello I am really struggling with this word problem:
A high school student was able to save $3000 by working a part-time job every summer. He invested half the money in a money
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A high school student was able to save $3000 by working a part-time job every summer. He invested half the money in a money
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Question 400831: hello I am really struggling with this word problem:
A high school student was able to save $3000 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 $90 in interest. What were the interest rates of the money market account and the stock?
Answer in percentages and round to one decimal place.
Thank you.
You can put this solution on YOUR website! A high school student was able to save $3000 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.
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1500 invested at r
1500 invested at 3r
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After a year he earned $90 in interest.
What were the interest rates of the money market account and the stock?
Answer in percentages and round to one decimal place.
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Equation:
interest + interest = interest
1500r + 1500(3r) = 90
1500r + 4500r = 90
6000r = 90
r = 0.015 or 1.5% (money market investment rate)
3r = 0.045 or 4.5% (stock investment rate)
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cheers,
stan H.
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