SOLUTION: Andrew invests $10100 in two different accounts. The first account paid 5 %, the second account paid 13 % in interest. At the end of the first year he had earned $881 in interest.
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Question 1150735: Andrew invests $10100 in two different accounts. The first account paid 5 %, the second account paid 13 % in interest. At the end of the first year he had earned $881 in interest. How much was in each account? Answer by ikleyn(52834) (Show Source):
Let x be the loaned amount at 13% interest rate.
Then the amount loaned at 5% rate is (10100-x) dollars.
The setup equation is
0.13x + 0.05*(10100-x) = 881 dollars (the total interest amount).
From the equation
x = = 4700.
ANSWER. $4700 was loaned at 13% and the rest, 10100-4700 = 5400 dollars, was loaned at 5%.
CHECK. 0.13*4700 + 0.05*5400 = 881 dollars. ! Correct !
Solved.
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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).
