Question

You have $1000 to invest in two different accounts. In order to save the money you need for college, you need to average 6.6 percent interest. If the two accounts pay 5 percent and 7 percent interest, how much should you invest in each account?

Answer 1

Let x dollars be your investment at 7%;

then the investment at 3% is the rest (1000-x) dollars.


The total interest equation is

0.07x + 0.03*(1000-x) = 0.061*1000.


Express x and calculate

x = %280.061%2A1000-0.03%2A1000%29%2F%280.07-0.03%29 = 775.


ANSWER. $700 is the 7% investment; the rest, (1000-775) = 225 dollars is the 3% investment.