Michael has $12,500 to invest. he invests part in an account which earns 4.2% annual interest and the rest in an account which earns 6.2% annual interest. he earns $669.50 in interest at the end of the year. how much was invested at each rate?

Question

Kali Clay

Mathematics

18 December, 08:45

Michael has $12,500 to invest. he invests part in an account which earns 4.2% annual interest and the rest in an account which earns 6.2% annual interest. he earns $669.50 in interest at the end of the year. how much was invested at each rate?

+5

Answers (1)

Know the Answer?

Elisha Pruitt · Answer 1

Suppose he invest x dollars in one account, y in the other

x+y=12,500

0.042x+0.062y=669.50

multiple the first equation by 0.042: 0.042x+0.042y=525

subtract this new equation from equation 2: 0.02y=144.50

y=7225

x=12500-7225=5275