Samantha has two investments totaling $13,500. Plan A is at an APR of 5.25% and plan B is at an APR of 6.5%. After one year, the interest earned from plan B is $425 more than the interest from plan A. How much did she invest in each plan?
2006-11-02 11:49:39 · 6 answers · asked by shorty4one2006 1 in Business & Finance ➔ Personal Finance
I know I shouldn't be giving the answers to your homework, but here ya go:
A + B = 13,500
0.0525A = interest earned from investment A
0.065B = interest earned from investment B
0.065B = 0.0525A + 425
A + B = 13,500
Solve for A and B and you get:
A = $3,851.06
B = $9,648.94
(Answers were rounded to the nearest hundredth).
At first, I didn't want to type out all the work, but I feel generous since this is my first post. Here ya go:
A + B = 13,500
A = 13,500 - B
Plug into other equation and solve for B:
0.065B = 0.0525(13,500 - B)+425
0.065B = 708.75 - 0.0525B + 425
0.1175B = 1133.75
B = 9,648.94
Plug back into A = 13,500 - B and you get
A = 13,500 - 9,648.94
A = 3,851.06
To check your answer, solve for interest earned in each account:
Interest-A = 0.0525 x $3,851.06 = $202.18
Interest-B = 0.065 x $9,648.94 = $627.18
Interest-B - Interest-A = $627.18 - $202.18 = $425
2006-11-02 12:28:46 · answer #1 · answered by dirtypanda 1 · 1⤊ 0⤋
Thats hard
2006-11-02 12:38:20 · answer #2 · answered by Darke_Immortal 1 · 0⤊ 0⤋
Beats me.
2006-11-02 11:58:04 · answer #3 · answered by maggotier 4 · 0⤊ 0⤋
Oh, no! Math! How COULD you?!?!? I'm a blonde!!
2006-11-02 11:52:15 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I give up!
2006-11-02 11:50:44 · answer #5 · answered by Anonymous · 0⤊ 0⤋
who cares??
2006-11-02 12:03:56 · answer #6 · answered by ? 6 · 0⤊ 0⤋