I cannot remember how to set up word problems for this.

Question

Leo invests money into two different accounts, Account A and Account B. Account A earns 4.5% annual

interest and Account B earns 7% annual interest. After one year, Leo earned a total of $1287.50 in interest. If

he invested a total of $25,000, how much money did he invest in each account?

Answer 1

Let the amount of money Leo invested in Account A be x and the amount invested in Account B be

25000-x since the total investment is $25,000.

We know:

Account A earns 4.5% interest annually.

Account B earns 7% interest annually.

The total interest earned after one year is $1,287.50.

The interest from Account A is 0.045x, and the interest from Account B is 0.07(25000 - x).

The total interest earned is given by:

0.045x + 0.07(25000 - x) = 1287.50

Now, let's solve this equation step by step.

1. Expand the terms on the left side:

  0.045x + 0.07 * 25000 - 0.07x = 1287.50

  0.045x + 1750 - 0.07x = 1287.50

2. Combine like terms:

  -0.025x + 1750 = 1287.50

3. Subtract 1750 from both sides:

  -0.025x = 1287.50 - 1750

  -0.025x = -462.50

4. Divide by -0.025:

  x = -462.50 / -0.025

  x = 18500

So, Leo invested $18,500 in Account A.

To find the amount he invested in Account B:

25000 - 18500 = 6500

Thus, Leo invested $18,500 in Account A and $6,500 in Account B.

Answer 2

So basically, you have two unknowns so you'll need two equations.

Let the investment amounts be A and B. Remember to convert percent to decimal.

0.045A + 0.07B = 1287.50

A + B = 25000

You can replace B in the first equation with (25000 - A) and solve for A. Then use that value in the second equation to solve for B.