Simple Interest

Question

Samantha invests a total of $26,000 in two accounts. The first account earned a rate of return of 7% (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 $1,220.00. How much was invested into each account?

Answer 1

.07x + .03(26-x) = 1.22

.07x -.03x = 1.22 -.03(26)

.04x = 1.22- .78= .44

x =.44/.04 = $11 thousand invested at 7%

26-11.5 = $15 thousand invested at 3%

.07(11) + .03(15) = .77 + .45 = 1.22