Question

Chris invests a total of $14,700 in two accounts. The first account earned a rate of return of 4% (after a year). However, the second account suffered a 3% loss in the same time period. At the end of one year, the total amount of money gained was $126. How much was invested in each account?

a. $7,000 in the first account, $7,700 in the second account
b. $7,700 in the first account, $7,000 in the second account
c. $8,000 in the first account, $6,700 in the second account
d. $6,700 in the first account, $8,000 in the second account

Answer 1

After setting up a system of equations to represent Chris's investment and returns, it was found that he invested $8,100 in the first account and $6,600 in the second account. This conclusion was reached through algebraic manipulation and solving for the two variables representing the amounts invested in each account.

Step-by-step explanation:

The problem consists of determining how much Chris invested in each of two accounts given a certain rate of return and a net gain. To solve this, we set up a system of equations since Chris invested a total of $14,700 across both accounts.

Let's call the amount invested in the first account x, and the amount invested in the second account y. We can establish our equations based on the given information:

Solving this system, here is the process:

Therefore, Chris invested $8,100 in the first account and $6,600 in the second account, matching none of the provided options. Thus, there may be a mistake in the original problem or the provided options.