Question

Aliya deposited half as much money in a savings account earning 1.9% simple interest as she invested in a money market account that earns 3.7% simple interest. If the total interest after one year is $297.60 , how much did she invest in each account?Ive tried this problem several times and I just think I don't know how to do it because every time I get the wrong answer.

Answer 1

Let A be the amount of money that Aliya deposited in the savings account. Since A is half as much as money as she invested in a money market account, then the amount that she invested in the market account is 2A.

Express the interest that Aliya earned in terms of A. Set it equal to the amount of $297.60 and then solve for A.

Since the savings account gives 1.9% simple interest, the total amount of interest that she will earn from the savings account is 1.9% of A, which is equal to:

$\frac{1.9}{100}\times A$

Since the money market account gives 3.7% simple interest, the total amount of interest that she will earn from the money market account, is 3.7% of 2A, which is equal to:

$\frac{3.7}{100}\times2A$

Add both interests in terms of A and simplify the expression:

$\begin{gathered} \frac{1.9}{100}\times A+\frac{3.7}{100}\times2A \\ =\frac{1.9}{100}\times A+\frac{7.4}{100}\times A \\ =(\frac{1.9}{100}+\frac{7.4}{100})\times A \\ =\frac{1.9+7.4}{100}\times A \\ =\frac{9.3}{100}\times A \end{gathered}$

The expression (9.3/100)*A represents the total interest after one year. Then:

$\begin{gathered} \frac{9.3}{100}\times A=297.60 \\ \Rightarrow A=\frac{100}{9.3}\times297.60 \\ \Rightarrow A=\frac{100\times297.60}{9.3} \\ \Rightarrow A=\frac{29760}{9.3} \\ \Rightarrow A=3200 \end{gathered}$

Use the value of A to find the amount that was invested in the money market account:

$2A=2\times3200=6400$

Therefore, Aliya deposited 3200 in a savings account and 6400 in a money market account.