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How long would Debbie have to leave her money in two accounts, $5000 at 8.75% and $7000 at

9.5%, in order to earn $8820 in interest?

User Bdloul
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1 Answer

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Assuming this is a simple interest situation:

The 8.75% account will earn (0.0875)(5000) each year.
$437.5 earned per year

The 9.5 % account will earn (0.095)(7000) each year

$665 earned per year

Together, these accounts earn $1102.5 per year.

If x is the number of years until the desired interest is earned, then you need to solve 1102.5x = 8820. Dividing by 1102.5 on both sides, you find x=8.

Again, assuming this is simple interest and not compound interest, it will take 8 years.

User RyanMac
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