SOLUTION: In investing $5,750 of a couple's money, a financial planner put some of it into a savings account paying 3% annual simple interest. The rest was invested in a riskier mini-mall de
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Question 918985: In investing $5,750 of a couple's money, a financial planner put some of it into a savings account paying 3% annual simple interest. The rest was invested in a riskier mini-mall development plan paying 10% annual simple interest. The combined interest earned for the first year was $421. How much money was invested at each rate? Answer by richwmiller(17219) (Show Source):
You can put this solution on YOUR website! Total amount of money invested: $5750
x+y=5750,
Total yearly interest for the two accounts is: $421
0.03*x+0.1*y=421
x=5750-y
Substitute for x
0.03*(5750-y)+0.1*y=421
Multiply out
172.5-0.03*y+0.1*y=421
Combine like terms.
0.07*y=248.5
Isolate y
y=$ 3550.00 at 10% earns $355 interest
x=5750-y
Calculate x
x=$ 2200.00 at 3% earns $66 interest
Check
0.03*2200+0.1*3550=421
66+355=421
421=421
If 421=421 is TRUE and neither x nor y is negative then all is well
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