Question

You have invested a total of $5,500 in two different banks. Bank A pays 6% interest, and Bank B pays 7.5% interest. After a year, you have made $325 in interest. How much money did you invest in each bank? Use A for Bank A money and B for Bank B money.

Answer 1

The question is about using algebra to determine how much was invested in two banks with different interest rates given the total investment and interest earned. By setting up two equations for the amounts invested and the interest earned, we can solve for the amounts invested in each bank.

Step-by-step explanation:

The student is asking for help with a problem related to simple interest and how to allocate investments to maximize returns. To solve this problem, we need to set up two equations based on the given information. Let A be the amount invested in Bank A at 6% interest, and B be the amount invested in Bank B at 7.5% interest.

The total amount invested is $5,500, so the first equation is:
A + B = 5500.

The total interest earned after a year is $325, with the second equation being:
0.06A + 0.075B = 325.

Now we can solve these two equations simultaneously. If we multiply the second equation by 100 to get rid of the decimals, it becomes:
6A + 7.5B = 32500. This can be combined with the first equation to solve for A and B, showing us how much was invested in each bank.