Question

National savings is equal to the sum of private savings and public savings. To make our notation a bit easier, we will call national savings S, private savings V, and public savings U. So in other words,S = V + U.If private savings 'V' = 0.75S and total savings 'S' equals $4.20 billion, solve for public and private savings.Public savings: _________$ billionPrivate savings:__________-- $ billion

Answer 1

Answer:

Public savings = 1.05 billion

Private savings = 3.15 billion

Explanation:

Formula for Total savings is given as s= v+ u

Solving for private savings (v)

V = 0.75* S

V= 0.75 * 4.2 billion

V= 3.15 billion

To get public savings (u) substitute the value of v above in s=v+ u

Therefore 4.2 billion = 3.15 billion + u

Collect terms

u= 4.2 billion - 3.15 billion

u= 1.05 billion