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Fiesta28 [93]
3 years ago
13

Nico was stunned when he opened the mail.Here was a check for $332.50 this is the interest he earned on his investment.One year

ago Nico had been given 5,000.His parents made him put it in the bank and save it for college,but the said he could keep the interest it earned each year.A portion of his money is deposited in a high rate account that earned 8% annual interest.The rest is in a regular account that earned 3% this year.Both accounts pay simple interest computed at the end of the year.How much of Nicos money was invested in each account.
Mathematics
1 answer:
Mazyrski [523]3 years ago
7 0

Answer:

Investment A = 3650

Investment B = 1350

Step-by-step explanation:

Given that:

Total interest earned = 332.50

Total Principal invested = 5000

Investment A:

Rate = 8%

Time = 1 year

Principal = a

Interest earned = 0.08a

Investment B:

Rate = 3%

Time = 1 year

Principal = b

Interest earned = 0.03b

a + b = 5000 ____(1)

0.08a + 0.03b = 332.50 - - - (2)

From (1)

a = 5000 - b

Into (2)

0.08(5000 - b) + 0.03b = 332.50

400 - 0.08b + 0.03b = 332.50

400 - 0.05b = 332.50

-0.05b = - 67.5

b = $1350

a = 5000 - b

a = 5000 - 1350

a = $3650

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