SOLUTION: Sal Boxer decided to divide a gift of $7000 into two different accounts. He places $1000 in an account that earns an annual simple interest rate of 7.5% The remaining money was pla
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Question 907916: Sal Boxer decided to divide a gift of $7000 into two different accounts. He places $1000 in an account that earns an annual simple interest rate of 7.5% The remaining money was placed in an account that earns an annual simple interest rate of 8.25% How much interest rate will Sal earn from the two accounts after one year? Answer by richwmiller(17219) (Show Source):
You can put this solution on YOUR website! 0.075*1000+0.0825*6000=570
75.0+495.0=570
check
Total amount of money invested: $7000
x+y=7000,
Total yearly interest for the two accounts is: $570
0.075*x+0.0825*y=570
x=7000-y
Substitute for x
0.075*(7000-y)+0.0825*y=570
Multiply out
525.0-0.075y+0.0825*y=570
Combine like terms.
0.0075*y=45.0
Isolate y
y=$ 6000.00 at 8.25%
x=7000-y
Calculate x
x=$ 1000.00 at 7.5%
