Question

Juan wants to deposit $700 into savings accounts at three different banks: bank of chance, merchant bank, and utopian financing. he will deposit four times as much into merchant bank as bank of chance because they offer a higher interest rate. he also expects the utopian financing deposit to be only 25% of the total of the other two deposits. how much will juan deposit into the utopian financing savings account?

Answer 1

Let bank of chance deposit = x

Merchant bank deposit = 4x

Utopian deposit = 0.25*(x+4x) = 0.25*5x = 1.25x

x + 4x +1.25x = 700

6.25x = 700

x = 700/6.25 = 112

Deposit into Utopian financing account = 112*1.25 = $140

Deposit into Utopian financing account= $140