Alewuya invests a total of $21,500 in two accounts. The first account earned a rate of return of 15% (after a year).

Question

Alewuya invests a total of $21,500 in two accounts. The first account earned a rate of return of 15% (after a year). However, the second account suffered a 7% loss in the same time period. At the end of one year, the total amount of money gained was $-735.00. How much was invested into each account?

Answer 1

.15x - .07(21,500-x) = -735

.15x +.07x = -735 + .07(21,500)

.22x = -735 + 1505 = 770

x = 770/.22 = $3,500 in the 1st account

21500-3500 = $18,000 in the 2nd account

.15(3,500) -.07(18000) = 525 -1260 = -735