Question

Last year Tammy had $4,500 to invest in two savings accounts. One account earns 7% simple annual interest, and the other account earns 6% simple annual interest. At the end of the year, Tammy had earned a total of $290 in interest from the two savings accounts.

Part A Write a system of two equations that could be used to find the amount of money invested in each account. Let x represent the amount invested at 7%, and let y represent the amount invested at 6%.
Part B Solve the system of equations. How much did Tammy have invested at each rate?

Answer 1

Let x be the amount invested at 7% and y the amount invested at 6%

We know that the yearly interest earned = 0.07(x) and 0.06(y)
x+y =4500
0.07x +0.06 y =290
Solving the equations will give , x = $2,000 and y=$2,500