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 3.3% simple interest. If the total interest after one year is $170.00, how much did she invest in each account?

Answer 1

Answer: she deposited $2000 at 1.9%

She deposited $4000 at 3.3%

Step-by-step explanation:

Let x represent the amount that she deposited in the account earning 1.9% simple interest.

Let y represent the amount that she deposited in the account earning 3.3% simple interest.

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 3.3% simple interest. This means that

x = y/2

The formula for simple interest is expressed as

I = PRT/100

For the savings account earning 1.9% simple interest,

I = (x × 1.9 × 1)/100 = 0.019x

For the money market account that earns 3.3% simple interest,

I = (y × 3.3 × 1) = 0.033y

If the total interest after one year is $170.00, it means that

0.019x + 0.033y = 170 - - - - - - - - - -1

Substituting x = y/2 into equation 1, it becomes

0.019×y/2 + 0.033y = 170

Cross multiplying, it becomes

0.019y + 0.066y = 340

0.085y = 340

y = 340/0.085

y = $4000

x = y/2 = 4000/2

x = 2000