Question

You invested $11,000 in two accounts paying 3% and 7% annual interest, respectively. If the total interest earned for the year was $730, how much was invested at each rate? The amount invested at 3% is $​

Answer 1

A 3% = 1000 and B 7% = 10000

Explanation:

A + B = 11000

A * 0.03 + B * 0.07 = $730

A = 11000 - B

(11000 - B)*0.03 + B*0.07 = 730

330 - 0.03B + 0.07B = 730

330 + 0.04B = 730

0.04B = 400

B = 10000

A = 11000 - B = 11000 - 10000

A = 1000

Answer 2

I invested $ 10,000 at 7% per year, and $ 1,000 at 3% per year.

Explanation:

Given that I invested $ 11,000 in two accounts paying 3% and 7% annual interest, respectively, if the total interest earned for the year was $ 730, to determine how much was invested at each rate, the following calculation must be performed:

5,000 x 0.07 + 6,000 x 0.03 = 530

8,000 x 0.07 + 3,000 x 0.03 = 650

10,000 x 0.07 + 1,000 x 0.03 = 730

Therefore, I invested $ 10,000 at 7% per year, and $ 1,000 at 3% per year.