Question

Michael Perez deposited a total of $2000 with two savings institutions. One pays interest at a rate of 5%/year, whereas the other pays interest at a rate of 7%/year. If Michael earned a total of $112 in interest during a single year, how much did he deposit in each institution

Answer 1

$1,400

Step-by-step explanation:

Let us assume the interest rate 5% be 0.05X = X

And, for interest rate 7% be 0.07X = Y

So the first equation is

X + Y = $2,000 ................ (1)

And, the second equation is

0.05X + 0.07Y = $112 .................. (2)

Now multiply the 0.05 in equation 1

0.05X + 0.05Y = 100

0.05X + 0.07Y = $112

Now solving these above equations

0.02Y = 12

Y = 600

Now put the Y values to the first equation

X + 600 = $2,000

Y = $1,400