Question

Samantha invests a total of $26,500 in two accounts. The first account earned a rate of return of 14% (after a year). However, the second account suffered a 4% loss in the same time period. At the end of one year, the total amount of money gained was $1,910.00. How much was invested into each account?

Answer 1

The correct answer is $16500 and $ 10000 each in two accounts.

Explanation:

Samantha invests a total of $26,500 in two accounts.

Let Samantha invest $x in one account and $(26500 - x) in the other account.

The first account earned a rate of return of 14% (after a year).

Return earned = 14% of x

The second account suffered a 4% loss in the same time period.

Loss suffered = 4% of (26500 - x)

At the end of one year, the total amount of money gained was $1,910.00.

Therefore 14% of x - 4 % of (26500 - x) = 1910

⇒ 0.14x - 1060 + 0.04x = 1910

⇒ 0.18x = 2970

⇒ x = 16500

Therefore Samantha invested $16500 and $10000 each in two accounts.