Question

In planning her retirement, Liza deposits some money at 4.5% interest, with twice as much deposited at 5%. Find the amount deposited at each rate if the total annual interest income is $1595.

Answer 1

Let

x ----> amount deposited at 4.5%

y ----> amount deposited at 5%

we have that

y=2x----> equation A

4.5%=0.045

5%=0.05

so

0.045x+0.05y=1,595 ----> equation B

solve the system

substitute equation A in equation B

0.045(x)+0.05(2x)=1,595

solve for x

0.045x+0.10x=1,595

0.145x=1,595

x=11,000

Find y

y=2(11,000)=22,000

The amount deposited at 4.5% was $11,000 and the amount deposited at 5% was $22,000