Question

A 5000 principal is invested in two accounts, one earning 1% interest and another earning 6% interest. If the total interest for the year is $170, how much is invested in each account

Answer 1

Answer:

2600 into the account earning 1% interest

2400 into the account earning 6% interest

Step-by-step explanation:

let x= account earning 1% interest

y= account earning 6% interest

we can write

x+y=5000   (equation 1)

.01x+.06y=170   (equation 2)

mulitply equation 1 by .01

.01x+.01y=50

subtract this from equation 2

(.01x+.06y)-(.01x+.01y)= 170-50

.05y= 120

y= 2400

Plug in y= 2400 into equation 1

x+2400=5000

x=2600