Set up a system of equations and solve. Show all your work.

Question

Chris invests a total of $14,500 in two accounts. The first account earned a rate of return of 14% (after a year). However, the second account suffered a 3% loss in the same time period. At the end of one year, the total amount of money gained was $925.00. How much was invested into each account?

Answer 1

let x+y =14500 where x and y represent the amounts invested for each account and .14x -.03y =925 be the amount returned on each investment. Multiply the first equation by .03 and add it to the second equation

.03x + .03y = .03(14500) =435

.14x -.03y =925

adding these two equations gives .17x = 1360 x= 8000 dollars and y= 6500 dollars