Question

Scott invested a total of $9500 at two separate banks. One bank pays simple interest of 11% per year.while the other pays simple interest at a rate of 9% per year. IfScott earned $973.00 in interest during a single year, how much did he have on deposit in each bank?

Answer 1

Let x be the money invested on the bank that pays 11% per year and y be the money invested on the one that pays 9% per year.

So:

x + y = 9500

0.11x + 0.09y = 973

Let's solve the system using substitution:

x = 9500 -y

0.11( 9500 -y) + 0.09y = 973

1045 - 0.11y + 0.09y = 973

-0.02y = 973 - 1045

0.02y = 72

y= 3600

x+ y = 9500

x = 9500 - 3600

x = 5900

Answer: He deposited $5900 and $3600.