Posted by Bill on .
Amelia's parents and grand parents have both opened savings accounts to save for Amelia's education this year. Amelia's parents' savings account earned 5% interest and her grandparents account earned 8% interest. This year the two savings accounts have earned a total of $460 in interest. At the beginning of the year, the two accounts were worth a total of $6400. Determine the current values of both savings account.
Designate the beginning value of one account as X and the other as $6400 - X. This leads to the following formula:
.05X + .08(6400 - X) = 460
Solve for X to determine the original amount for the parents and work from there.
I hope this helps. Thanks for asking.