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Fred invests 3000 more in an account that pays 4% interest than he gives an account that pays 3% interest. If the total interest earned for the first year is 610$, how much did Fred invest in each account

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Answer:$10000 was invested into the account earning 4% interest.

$7000 was invested into the account earning 3% interest.

Explanation:

Let x represent the amount invested into the account earning 4% interest.

Let y represent the amount invested into the account earning 3% interest.

Fred invests 3000 more in an account that pays 4% interest than he gives an account that pays 3% interest. This means that

x = y + 3000

The formula for simple interest is expressed as

I = PRT/100

Where

P represents the principal

R represents interest rate

T represents time in years

I = interest after t years

Considering the account earning 4% interest, the interest would be

I = (x × 4 × 1)/100 = 0.04x

Considering the account earning 11% interest, the interest would be

I = (x × 3 × 1)/100 = 0.03y

If the total interest earned for the first year is $610, it means that

0.04x + 0.03y = 610 - - - - - - - - - - -1

Substituting x = y + 3000 into equation 1, it becomes

0.04(y + 3000) + 0.03y = 610

0.04y + 120 + 0.03y = 610

0.04y + 0.03y = 610 - 120

0.07y = 490

y = 490/0.07 = $7000

x = y + 3000 = 7000 + 3000

x = $10000

User Suban Dhyako
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