SOLUTION: Nick was stunned when he opened the mail. Here was a check for $332.50! This was the interest he earned on his investment. One year ago Nico had been given $5000. His parents made
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> SOLUTION: Nick was stunned when he opened the mail. Here was a check for $332.50! This was the interest he earned on his investment. One year ago Nico had been given $5000. His parents made
Log On
Question 923305: Nick was stunned when he opened the mail. Here was a check for $332.50! This was the interest he earned on his investment. One year ago Nico had been given $5000. His parents made him put it in the bank and save it for college, but they said he could keep the interest it earned each year. A portion of his is deposited in a high rate account that earned 8% annual interest. The rest is in a regular account that earned 3% this year. How much of Nico's money was invested in each account? Answer by richwmiller(17219) (Show Source):
You can put this solution on YOUR website! Total amount of money invested: $5000
x+y=5000,
Total yearly interest for the two accounts is: $332.50
0.08*x+0.03*y=332.5
x=5000-y
Substitute for x
0.08*(5000-y)+0.03*y=332.5
Multiply out
400-0.08*y+0.03*y=332.5
Combine like terms.
-0.05*y=-67.5
Isolate y
y=$ 1350.00 at 3% earns $40.50 interest
x=5000-y
Calculate x
x=$ 3650.00 at 8% earns $292.00 interest
Check
0.08*3650+0.03*1350=332.5
292+40.5=332.5
332.5=332.5
If 332.5=332.5 is TRUE and neither x nor y is negative then all is well
codeint1
