SOLUTION: Erik invests $6700 in two different accounts. The first account paid 2 %, the second account paid 8 % in interest. At the end of the first year he had earned $470 in interest. How
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> SOLUTION: Erik invests $6700 in two different accounts. The first account paid 2 %, the second account paid 8 % in interest. At the end of the first year he had earned $470 in interest. How
Log On
Question 1136898: Erik invests $6700 in two different accounts. The first account paid 2 %, the second account paid 8 % in interest. At the end of the first year he had earned $470 in interest. How much was in each account?
Let x = amount at 8%. Then the rest, (6700-x) is amount at 2%.
0.08*x + 0.02*(6700-x) = 470
x = = 5600 dollars.
ANSWER. $5600 at 8% and the rest, $1100 at 2%.
CHECK. 5600*0.08 + 1100*0.02 = 470 dollars. ! Correct !
Solved.
---------------------
It is a standard and typical problem on investments.
You will find there different approaches (using one equation or a system of two equations in two unknowns), as well as
different methods of solution to the equations (Substitution, Elimination).
