Mrs. Jones invested $10,000, some in each of two separate accounts. One pays 5% interest and the other 6%. If her combined annual interest is $575, how much does she have invested in each account?....I need help solving this problem...thanks
To solve this problem, let's break it down step by step.
Let's assume Mrs. Jones invested x dollars in the account that pays 5% interest.
Therefore, she would have invested (10000 - x) dollars in the account that pays 6% interest since the total investment is $10,000.
Now, let's calculate the interest earned from each account:
The interest earned from the first account is x * 0.05.
The interest earned from the second account is (10000 - x) * 0.06.
According to the problem, the combined annual interest is $575:
So, we can write an equation based on the given information:
x * 0.05 + (10000 - x) * 0.06 = 575
Now, let's solve this equation to find the value of x:
0.05x + 0.06(10000 - x) = 575
0.05x + 600 - 0.06x = 575
0.01x + 600 = 575
0.01x = 575 - 600
0.01x = -25
x = -25 / 0.01
x = 2500
So, Mrs. Jones has $2,500 invested in the account that pays 5% interest.
To find out how much she has invested in the account that pays 6% interest, we substitute this value of x back into the equation:
(10000 - x) = (10000 - 2500) = $7500
Therefore, Mrs. Jones has $2,500 invested in the account that pays 5% interest and $7,500 invested in the account that pays 6% interest.
.05X+.06Y=575
X+Y=10,000