interest rates

Question

May Ling decided to invest $11,000 of her retirement fund conservatively. she invested part of this money into one account that pays 4% simple interest and part into another account that pays 3% simple interest. Last year she earned $400 in interest how much did she invest in each type of account

Answer 1

Let x = amount at 4% and y amount at 3%

 

x + y =11000

.04X + .03y = 400

 

4x + 3y = 40000

4X + 4y = 44000

 

y = 4000

x = 7000