SOLUTION: When Sara changes jobs, she rolledover $8480.00 in her retirement account into 2 simple interest accounts. on 1 account the annual simple interest rate is 8.25%, the 2nd account ha

Algebra ->  Finance -> SOLUTION: When Sara changes jobs, she rolledover $8480.00 in her retirement account into 2 simple interest accounts. on 1 account the annual simple interest rate is 8.25%, the 2nd account ha      Log On


   

Question 173063: When Sara changes jobs, she rolledover $8480.00 in her retirement account into 2 simple interest accounts. on 1 account the annual simple interest rate is 8.25%, the 2nd account has annual simple interest rate is 5%. How much must be invested in each account if the 2 accounts earned the same amount of annual interest?
Answer by Mathtut(3670) About Me  (Show Source):
You can put this solution on YOUR website!
lets call the amount invested in account 1, x and in account 2, y=(8400-x).
:
account 1-----> .0825(x)
:
account 2-----> .05(8480-x)
:
we set these two formula's equal to each other to determine the amounts at which account 1 and account 2 will be equal.
:
.0825x=.05(8480-x)
:
.0825x=424-.05x
:
.1325x=424
:
highlight%28x=3200%29amount invested at 8.25%
:
highlight%28y=8480-3200=5280%29amount invested at 5%