Jerry invests a total of $5000 in two different savings accounts. One account earns 2% interest, and the other account earns 5% interest. After one year, he earned a total of $181 simple interest. How much money did Jerry invest in teh account earning 5% interest?
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Simple Interest
- Thread starter bambam46
- Start date
Jerry invests a total of $5000 in two different savings accounts. One account earns 2% interest, and the other account earns 5% interest. After one year, he earned a total of $181 simple interest. How much money did Jerry invest in teh account earning 5% interest?
The wording is a little confusing. I assume you mean that between the two savings accounts the TOTAL amount invested was $5,000, right?
Yes thats correct
So you have x invested in one account and 5,000 - x invested in the other one. Let the account with $x invested be the one that earns the 2% interest. Then the other amount is invested at 5% interest.
So the amount of interest earned for each of these accounts equals $181. Do you know how to set this equation up at this point?
How would that equation be set up
Don't wanna do ALL of your work for ya, but I can give you an example and you can see if you can relate this example to your situation.
If you invest $100 at 7% interest for one year, the amount of interest earned would be 100(0.07) = $7.
Now it's your turn...