Intrest/Value Equation

Question

Monico invests a total of $10,500 in two accounts. The first account earned a rate of return of 14% (after a year). However, the second account suffered a 9% loss in the same time period. At the end of one year, the total amount of money gained was $895.00. How much was invested into each account?

Answer 1

Set up a system of equations. Let "x" be the amount of money in account 1 and "y" be the amount of money in account 2. The first equation will be based on the fact that there is $10,500 in the two accounts total. So think about how you would write an equation to find the total amount of the two accounts.

The second equation will be based on the gain and loss of the two accounts. So you would take 14% of the first account (the gain), and then subtract 9% of the second account (the loss), and that would give you $895.

Once you have your two equations, then you can use them to solve for "x" and "y" via either substitution or elimination methods.