SOLUTION: Destiny invests $2500 in one account and $900 in an account paying 4 % higher interest. At the end of one year she had earned $274 in interest. At what rates did she invest?

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: Destiny invests $2500 in one account and $900 in an account paying 4 % higher interest. At the end of one year she had earned $274 in interest. At what rates did she invest?       Log On


   

Question 1072291: Destiny invests $2500 in one account and $900 in an account paying 4 % higher interest. At the end of one year she had earned $274 in interest. At what rates did she invest?
Answer by jorel1380(3719) About Me  (Show Source):
You can put this solution on YOUR website!
Let n be the interest rate of the first account. Then the interest rate of the second account is n+.04. So:
2500(n)+900(n+.04)=274
2500n+900n+36=274
3400n=238
n=.07
The interest rate on the first account is 7%; the second account is at 11%. ☺☺☺☺