Question

Juan invests a total of $350000 in two accounts. The first account earned a rate of return of 3% (after a year). However, the second account suffered a 2% loss in the same time period. At the end of one year, the total amount of money gained was $1250. How much was invested into each account

Answer 1

Answer:

Juan invested $ 165,000 at a rate of return of 3%, and $ 185,000 in the account that had losses of 2% per year.

Explanation:

Given that Juan invests a total of $ 350,000 in two accounts, and the first account earned a rate of return of 3% (after a year), but however, the second account suffered a 2% loss in the same time period, and at the end of one year, the total amount of money gained was $ 1250, to determine how much was invested into each account, the following calculation must be performed:

175,000 x 0.03 - 175,000 x 0.02 = 1,750

160,000 x 0.03 - 190,000 x 0.02 = 1,000

165,000 x 0.03 - 185,000 x 0.02 = 1,250

Therefore, Juan invested $ 165,000 at a rate of return of 3%, and $ 185,000 in the account that had losses of 2% per year.