Question

Zach invested money in two retirement investment accounts. One account pays 2.5% annual interest, and the other high-yield account pays 4.3% annual interest. He invested three times as much money in the 4.3% high-yield account as he did in the 2.5% account. At the end of the year, Zach made $1386 in interest. How much money did Zach invest in each account.

Answer 1

amount invested @2.5% = $9,000

Amount invested @4.3% = 3 × $9,000 = $27,000

Explanation:

Data provided in the question:

Let the amount invested in the account with 2.5% annual interest be 'x'

thus,

according to the question

the amount invested in the account with 4.3% annual interest will be '3x'

also,

2.5%(x) + 4.3%(3x) = $1386

or

⇒ 0.025x + 0.043(3x) = $1386

⇒ 0.025x + 0.129x = $1386

⇒ 0.154x = $1386

⇒ x = $9,000

Therefore,

amount invested @2.5% = $9,000

Amount invested @4.3% = 3 × $9,000 = $27,000