Interest rate

Question

paige inherits 100,000 and puts it into 2 accounts. One has 6% the other has 4.5% simple interest annually. At the end of 1 year her interest adds up to 5025. How much money is invested at each rate?

Answer 1

Let X be the amount put into 6%

 

$100,000 - x is amount in 4.5%

 

.06X + .045 ($100,000 - X) = $5025

 

Multiply by 1000 to clear the decimals

 

 60X + 45 ($1000,000 - X) = $5,025,000 

 

     60X + 4,500,000 - 45X = $5,025,000

 

                                15X =  $525,000

 

                                   X = $35,000

 

$35,000 at 6%  and $65,000 at 4.5%