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A $10,000 principal is invested in two accounts, one earning 3% interest and another earning8% interest. If the total interest for the year is $595, then how much is invested in eachaccount?

User Splinter
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A $10,000 principal is invested in two accounts, one earning 3% interest and another earning

8% interest. If the total interest for the year is $595, then how much is invested in each

account?

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10 000 = A + B

595 = A *(0.03) + B* (0.08)

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Solving the system of equations by substitution

10 000 = A + B

A = 10 000 - B

595 = (10 000 - B ) *(0.03) + B* (0.08)

595 = 300 - 0.03 B + 0.08 B

B ( 0.08 -0.03) = 595 - 300

B= 295 / 0.05

B= 5900

A = 10 000 -5900

A = 4100

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Answer

Of the 10,000, 4,100 were invested in the first account ( 3 % ) and 5900 in the second account (8%).

User Allan W
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