Question is in description.

Question

Last year Michelle invested money in two accounts. The first account had an interest rate of 2% and the second account had an interest rate of 5%. If she invested $100 more in the first account than the second and her total interest income was $184, how much did she invest at each rate?

Find what she invested in 2% and 5% 

Answer 1

Hi Shatoria.

 

Let's set up this problem.

 

Let X be the amount invested at 2%

and Y be the amount invested at 5%.

 

We know a few things

X = Y+100 since she invested 100 more in the first account (the account earning 2%)

 

We also know that the total interest earned after 1 year was $184.

We can express this as

.02X + .05Y = 184

 

But since X = Y+100, we can use substitution

.02X + .05Y = 184

.02(Y+100) + .05Y = 184

.02Y + 2 + .05Y = 184

.07Y = 182

Y = 2600

X = 2700