Question

You split $2200 between two savings accounts. account a pays an annual interest rate of 5% and account b pays an annual interest rate of 3%. after one year, you have earned a total of $78.50 in interest. how much money did you invest in each account?

Answer 1

• $625 at 5%
• $1575 at 3%

Explanation:

Let x be the amount at 5%

Then 2200 - x is the amount at 3%

The total interest is:

• 0.05x + (2200 - x)*0.03 = 78.50
• 5x + (2200 - x)*3 = 7850
• 5x + 6600 - 3x = 7850
• 2x = 7850 - 6600
• 2x = 1250
• x = 625

Find the amount at 3%:

• 2200 - 625 = 1575