Question

$6,000 dollars is invested in two different accounts earning 3% and 5% interest. At the end of one year, the two accounts earned $220 in interest. Set up a systems of linear equations to model the amount of money invested and the interest earned.

Answer 1

x + y = 6000

0.03x + 0.05y = 220

Explanation:

Given that :

Total principal amount = $6000

Account A:

Let principal = x

Rate = 3% = 0.03

Account B:

Let principal = y

Rate = 5% = 0.05

Interest earned at after one year = $220

Amount invested :

x + y = 6000

Simple interest = principal x rate x time

Interest earned

(x * 0.03 * 1 ) + (y * 0.05 * 1) = $220

0.03x + 0.05y = 220