SOLUTION: You invested a total of $5000.00 in 2 different banks. One bank pays 4% interest, and the other bank pays 6.5% interest. If you earn a total of $282.50 in interest the first year

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Question 316559: You invested a total of $5000.00 in 2 different banks. One bank pays 4% interest, and the other bank pays 6.5% interest. If you earn a total of $282.50 in interest the first year, how much did you invest in each bank?
Answer by texttutoring(324) About Me  (Show Source):
You can put this solution on YOUR website!
Let x = amount invested at 4%
Let y = amount invested at 6.5%

You have two variables, so you need two equations:

Equation 1: x+y = 5000 (the sum of money invested was $5000)
Equation 2: 0.04x + 0.065y = 282.50 (the sum of the interest earned)


Isolate for one of the variables in Equation 1, then plug it into Equation 2. I will choose to isolate for x:

x = 5000-y
0.04(5000-y) + 0.065y =282.50
200-0.04y +0.065y = 282.50
0.025y = 82.50
y=3300

x =5000-y
x=1700

So $1700 was invested at 4% and $3300 was invested at 6.5%.