Question

You invested $29000in two accounts paying 3% and 8% annual interest, respectively. If the total interest earned for the year was $1270, how much was invested at each rate?

Answer 1

Amount invested at 3%= $21,000

Amount invested at 8% = $8,000

Explanation:

$29,000 was invested in two accounts

The two accounts have annual interest of 3% and 8%

The total interest that was earned for the year is $1,270

Let y represent the amount invested at 3%

y = 3%

The amount invested at 8% can be represented as

29,000-y

Therefore the value of y can be calculated as follows

3/100 × y + 8/100(29,000-y)= 1270

0.03y + 0.08(29,000-y)= 1270

0.03y + 2320 - 0.08y= 1270

0.03y - 0.08y= 1270-2320

-0.05y= -1050

y = 1050/0.05

y= 21,000

The amount invested at 3% is $21,000

The amount invested at 8%

= 29,000-21,000

= $8000

Hence the amount invested at 3% is $21,000 and the amount invested at 8% is $8000