Question

Peter has money in two savings accounts. One rate is 6% and the other is 14%. If he has $900 more in the 14% account and the total interest is $221, how much is invested in each savings account?

Answer 1

Answer:

• $1375 at 14%
• $475 at 6%

Step-by-step explanation:

Let x represent the amount Peter invested at 14%. Then (x-900) is the amount he invested at 6%. His total interest earned is ...

  0.14x + 0.06(x -900) = 221

  0.20x = 275 . . . . . . . . . . . . . . . . add 54, simplify

  x = 1375 . . . . . . . . . . . . . . . . . . . .divide by 0.2; amount invested at 14%

  (x-900) = 475 . . . . . . . . . . . . . . . amount invested at 6%

Peter invested $475 in the 6% account and $1375 in the 14% account.