You split $1,500 between two savings accounts. Account A pays 5% annual interest and Account B pays

Discussion in 'Calculator Requests' started by math_celebrity, Mar 21, 2017.

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  1. math_celebrity

    math_celebrity Administrator Staff Member

    You split $1,500 between two savings accounts. Account A pays 5% annual interest and Account B pays 4% annual interest. After one year, you have earned a total of $69.50 in interest. How much money did you invest in each account. Explain.

    Let a be the amount you invest in Account A. So this means you invested 1500 - A in account B. We have the following equation:
    05a + (1500 - a).04 = 69.50

    Simplifying, we get:
    0.05a + 1560 - 0.04a = 69.50
    0.01a + 60 = 69.50

    Using our equation solver, we get:
    a = 950
    So this means Account B is b = 1500 - 950 = 550
     

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