Answer:
$2600 was invested on the 1% account while $2400 was invested on the 6% account.
Step-by-step explanation:
For simple interest we must apply the following formula:
M = C*r*t
Where M is the amount of interest generated, C is the invested money, r is the rate of interest and t is the elapsed time.
The sum of capital investead in each account, "x" for the 1% interest one and "y" for the 6% interest one, must be equal to the original $5000. The same way as the interest generated from these investments must be equal to the earnt $170. So we have:
x + y = 5000
For the first account:
M1 = x*0.01*1 = 0.01*x
For the second account:
M2 = y*0.06*1 = 0.06*y
The sum of interests:
0.01*x + 0.06*y = 170
We have a system of equations as shown below:
x + y = 5000
0.01*x + 0.06*y = 170
Multiplying the first equation by -0.01 and adding both equations we have:
-0.01*x - 0.01*y = -50
0.01*x + 0.06*y = 170
0.05*y = 120
y = 120 / 0.05 = $2400
x = 5000 - 2400 = $2600
$2600 was invested on the 1% account while $2400 was invested on the 6% account.
