Question

An investor is planning to invest a total of $15,000 in two accounts, one paying 4% annual simple interest, and the other 3%. If he wants to earn $550 annually in interest, how much should he invest at each rate

Answer 1

The amount that should be invested in the account that yields a 4% interest is $10,000.

The amount that should be invested in the account that yields a 3% interest is $5,000.

What are the linear equations that represent the question?

a + b = 15,000 equation 1

0.04a + 0.03b = 550 equation 2

Where:

a = amount invested in the account that yields a 4% interest

b = amount invested in the account that yields a 3% interest

How much should be invested at each rate?

Multiply equation 1 by 0.04

0.04a + 0.04b = 600 equation 3

Subtract equation 2 from equation 3

0.01b = 50

b = 50 / 0.01

b = 5000

Subtract 5000 from 15,000

15000 - 5000 = 10,000

To learn more about linear functions, please check: https://brainly.com/question/26434260

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