SOLUTION: Interest. A high school student was able to save $8000 by working a part-time job every summer. He invested half the money in a money market account and half the money in a stock t
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Question 210266: Interest. A high school student was able to save $8000 by working a part-time job every summer. He invested half the money in a money market account and half the money in a stock that paid three times as much interest as the money market account. After a year he earned $160 in interest. What were the interest rates of the money market account and the stock?
Answer in percentages and round to one decimal place.
You can put this solution on YOUR website! Interest. A high school student was able to save $8000 by working a part-time job every summer. He invested half the money in a money market account and half the money in a stock that paid three times as much interest as the money market account. After a year he earned $160 in interest. What were the interest rates of the money market account and the stock?
Answer in percentages and round to one decimal place.
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Let the money market rate be "r".
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Equation:
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interest + interest = interest
r*4000 + 3r*4000 = 160 dollars
15000r = 160
r = 0.01067... = 1.067%
3r = 0.032 = 3.2%
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Cheers,
Stan H.
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