SOLUTION: Investment word problem If jake has 20,000 to invest in two accounts. With one account earns 1% simple interest. And second account earns 3%. How much should be invested in ea

Algebra ->  Coordinate Systems and Linear Equations  -> Linear Equations and Systems Word Problems -> SOLUTION: Investment word problem If jake has 20,000 to invest in two accounts. With one account earns 1% simple interest. And second account earns 3%. How much should be invested in ea      Log On


   

Question 846036: Investment word problem
If jake has 20,000 to invest in two accounts.
With one account earns 1% simple interest.
And second account earns 3%. How much should be invested in each account
To earn exactly &450.00 at the end of the year.
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,  Previously Posted

If jake has $$20,000 to invest in two accounts.

 With one account with amount+highlight_green%28x%29 earns 1% simple interest.

 And second account with amount+highlight_green%28y%29earns 3%. 

 x + y = 20,000    0r  x = ($20,000 - y)

Question states***earn exactly &450.00 at the end of the year

 .01($20,000-y) + .03y = 450

 .01($20,000) - .01y + .03y = 450

  $200 - .01y + .03y = 450

                     .02y = 250

                        y =  = $75 + $375 = $450

Wish You the Best in your Studies.