Question

Need help plz .You have $2500 to invest in two different accounts. In order to save the money you need for college, you need to average 7% interest. If the two accounts pay 7.5% and 6% interest, how much should you invest in each account? Round to the nearest dollar amount.

A)$1667 in 7.5%, $833 in 6%


B)$1833 in 7.5%, $667 in 6%


C)$667 in 7.5%, $1833 in 6%


D)$833 in 7.5%, $1667 in 6%

Answer 1

A)$1667 in 7.5%, $833 in 6%

Explanation:

Let amount of money invested 6% account = x

Let amount of money invested 7.5% account = y

Then we get equations:

x+y=2500

or x=2500-y ...(i)

6% of x+7.5% of y=7% of (2500)

or 0.06x+0.075y=0.07(2500)

or 60x+75y=175000...(ii)

plug (i) into (ii)

60x+75y=175000

60(2500-y)+75y=175000

150000-60y+75y=175000

-60y+75y=175000-150000

15y=25000

y=$1666.66666667

or y=1667

plug into (i)

x=2500-y=2500-1667=833

Hence final answer is A)$1667 in 7.5%, $833 in 6%