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Q71.

Expert-verifiedFound in: Page 690

Book edition
7th Edition

Author(s)
James Stewart, Lothar Redlin, Saleem Watson

Pages
948 pages

ISBN
9781337067508

**A woman invests a total of $20,000 in two**

**accounts, one paying 5% and the other paying 8% simple**

**interest per year. Her annual interest is $1180. How much did**

**she invest at each rate?**

For the given investment problem the woman invested **$14,000** at a rate of 5% and **$6,000 **at a rate of 8%.

x = the amount invested in the first account.

y = the amount invested in the second account.

x + y = 20000 …….(1)

Also the total sum of interest earned would be,

0.05x + 0.08y = 1180 ……….(2)

Solving equation (1) and (2) we have,

20 $\times $ equation (2) gives x + 1.6y = 23600

Now subtracting this to equation (1), we get

0.6y = 3600

y = 6000

Substituting this in (1)

x + 6000 = 20000

x = 14000

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