Question

A $7,000 principal is invested in two accounts, one earning 1% interest and another
earning 5% interest. If the total interest for the year is $202, then how much is invested
in each account?
$
at 1% interest
$
at 5% interest

Answer 1

9514 1404 393

Answer:

• $3700 at 1%
• $3300 at 5%

Step-by-step explanation:

For "mixture" problems, I like to let the variable represent the amount of the largest contributor. Here, we can let x represent the amount invested at 5%. Then the amount invested at 1% is (7000-x). The total interest earned is ...

  0.05x +0.01(7000 -x) = 202

  0.04x = 132 . . . . . . . . simplify, subtract 70

  x = 3300

  (7000 -x) = 7000 -3300 = 3700 . . . . at 1%

$3700 was invested at 1% interest.

$3300 was invested at 5% interest.