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peter has money in two savings accounts. one rate is 7% and the other is 8%. if he has $900 more in the 8% account and the total interest is $306 . how much is invested in each savings accounts

User MahanTp
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1 Answer

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Given data:

The first interest rate is r=7%.

The second interest rate is r'=8%.

The total interest is I=$306.

The principle amount in 8% is p'=p+900.

The given timme is t=1.

The first interest is,

i=(prt)/100

substitute the given values.

i=p(7)(1)/100

=0.07p

The second interest is,

i'=(p'rt')/100

substitute the given values.

i'=(p+900)(8)(1)/100

=0.08(p+900)

=0.008p+72.

The expression for the total interest is,

I=i+i'

Substitute the above-calculated values.

306=0.07p+0.08p+72

234=0.15p

p=1560.

Investment in 8% is,

p'=1560+900

=2460.

Thus, the money invested in 7% account is $1560 and the money invested in 8% account is $2460.

User Myk Willis
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