Question

Laura invests $2500 in one account and $1500 in an account paying 2 % higher interest. At the end of one year she had earned $110 in interest. At what rates did she invest?

Answer 1

$2500 - 2%

$1500 - 4%

Explanation:

Say the interest for the $2500 is x, so the interest for the $1500 is x+0.02.

As an equation, they would look like this:

2500x+1500(x+0.02)=110

Now solve

2500+1500x+30=110

4000x=80

x=0.02

That means the interest for the $2500 is 0.02, or 2%, and the interest for the $1500 is 0.04, or 4%.