SOLUTION: Mr. Greenwood invests money in two accounts. His total investment was $25,000 if one account pays 6% in interest and the other pays 5%. how much does he have in each account if he

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Question 1125419: Mr. Greenwood invests money in two accounts. His total investment was $25,000 if one account pays 6% in interest and the other pays 5%. how much does he have in each account if he earned a total of $1,450 in interest in 1 year? set up equations and solve for full credit.
Found 2 solutions by ikleyn, greenestamps:
Answer by ikleyn(52814) About Me  (Show Source):
You can put this solution on YOUR website!
.
A TWIN problem was solved 5 minutes ago.

It is your TEMPLATE.


Read it attentively. Then solve your problems by the same method.


Prove that you do understand what was explained to you once and use this knowledge.


Do not post TWIN problems one after another.



Answer by greenestamps(13203) About Me  (Show Source):
You can put this solution on YOUR website!


I see the instructions say to set up equations and solve for full credit....

However, if an algebraic solution is not required for a problem like this, here is a method for solving problems like this which, if you understand it, will get you to the answer much faster and with far less work than the usual formal algebraic method. A problem like this takes me about 10 seconds to solve mentally using this method.

(1) The $25000 all at 5% would earn $1250 interest; all at 6% would earn $1500 interest.
(2) $1450 is 4/5 of the way from $1250 to $1500; that means 4/5 of the money was invested at the higher rate.
(3) 4/5 of $25000 is $20000.

ANSWER: $20,000 was invested at 6%; $5,000 at 5%.