Question

Jolene invests her savings in two bank accounts, One paying 4% and the other paying 10% simple interest per year. she puts twice as much in the lower yielding account because it is less risky. her annual interest is $7254. how much did she invest at each rate?

Answer 1

Let x be the amount she puts on the account paying 4% and y be the amount at the 10%.

x = 2y

0.04x + 0.1y = 7254

Now let's solve the system. Let's subtitute the first equation into the second:

0.04(2y) +0.1y= 7254

0.18y = 7254

y= 40,300

x= 2y

x = 80,600

She invested 80,600 at 4% and 40,300 at 10%.