Question

Formulate but do not solve the problem. Michael Perez deposited a total of $2000 with two savings institutions. One pays interest at a rate of 5%/year, whereas the Other pays interest at a rate of 8%/year. If Michael earned a total of $130 in interest during a single year, how much did he deposit in each institution? (Let x and y denote the amount of money, in dollars, invested at 5% and 8%, respectively.) 0.06x 0.08yx130 X2000

Answer 1

Explanation:

Michael Perez deposited a total of $2,000 with two savings institutions.

One pays interest at a rate of 5% per year whereas the other pays interest at a rate of 8% per year.

Let x denote the amount of money invested at 5%

y = 2000 - x ---(1)

Let y denote the amount of money invested at 8%

so 5x/100 + 8(2000-x)/100 = $130 ----(2)

Michael earned $130 in interest during a single year.