Question

You have $1000 to invest in two accounts with 3% and 7% interest. How much should you invest in each account?

a. $450 in 3%, $550 in 7%
b. $625 in 3%, $375 in 7%
c. $850 in 3%, $150 in 7%
d. $225 in 3%, $775 in 7%

Answer 1

You should invest $225 in the 3% account and $775 in the 7% account. We can set up a second equation, 0.03x + 0.07y = 0.03(1000). Solving this system of equations, we find that x = $225 and y = $775. Therefore, you should invest $225 in the 3% account and $775 in the 7% account.

Step-by-step explanation:

To determine how much to invest in each account, we can use a system of equations. Let x represent the amount invested in the 3% account and y represent the amount invested in the 7% account. The total amount invested is $1000, so x + y = 1000. The interest earned from the 3% account is 0.03x, and from the 7% account is 0.07y.

The total interest earned is 0.03x + 0.07y. We can set up a second equation, 0.03x + 0.07y = 0.03(1000). Solving this system of equations, we find that x = $225 and y = $775. Therefore, you should invest $225 in the 3% account and $775 in the 7% account.