Question

Holly was given $5 000 by her parents for savings towards college. She invested part of the money in a government bond that paid 6% simple interest every year, and the rest in a bank account that paid 3% simple interest each year. After one year, the investments had earned a total of $225. How much was invested in each plan?

Answer 1

2500 x 1.06 + 2500 x 1.03

Explanation:

2500 x 1.06 = 150

150 x .5 (half the simple interest) = 75

150 + 75 = 225