Question

Need help with this question. I also need tips for questions like this. I really don't understand and I'm very confused.

Answer 1

EXPLANATION

Assuming that we have two accounts paying 14% and 7% respectively

Assuming that x represents the amount invested in one account earning 14%

Then, 12,000 - x = y amount invested in the other account.

Changing percent to decimal 9%---> 0.09 and 7% --> 0.07

(1) y= 12,000 - x

The second relationship would be as follows:

(2) 0.14x + 0.07y = 1,435

*We are assuming that the sum of both amount of interest earned should be equal to $1,435.

Plugging in (1) in (2):

$0.14x\text{ + 0.07(12,000-x)}=1435$

Applying the distributive property:

$0.14x+840-0.07x=1435$

Subtracting -840 to both sides:

$0.14x\text{ -0.07x=1435-8}40$

Subtracting numbers:

$0.07x=595$

Dividing both sides by 0.07:

$x=\frac{595}{0.07}$

Simplifying:

$x=8,500$

Now, the amount invested in the other account would be y=12,000 - 8,500 = 3,500

In conclusion, the amount invested in each account is as follows:

Should invest $8,500 at 14% and $3,500 at 7%