Question

Marco has $8,000 to save for his daughter’s college education. He wants to divide it between Account A, which pays 3.2% interest per year, and Account B, which pays 8% interest per year. How much should he invest in each account if he wants the interest on the total investment to be 6.5%?

Answer 1

Your answer is $2,500 at 3.2%, $5,500 at 8%

Answer 2

2500 and 5500

Explanation:

To get an amount of an invesment we need the formula of interest which is $*(1+i) where $ is the money and i is the interest rate, so you are going to suppose that you are going to invest for one year.

2500*(1+0,032) + 5500(1+0,08) = 8520 so the extra amount is 520 (due to the interest) 520/8000= 0,065 then 6,5%.

Don't forget that in this case the time is one year but this variable affect the result.