Description
Jane saved $3,200 in two separate accounts. One account earns 4% annual interest and the other earns 5.2% in annual interest. If her total interest for the year was $140, then how much was in each account.
Explanation & Answer
Let us call the first account Account A and the money in it $x.
Let us also call the second account Account B and the money in it $y.
From the given information, we know that 4% of the money in account A add 5.2% of the money in account B makes up $140. Therefore, we get the equation: 0.04x + 0.052y = $140. Let's call this equation 1.
Also, we know that x + y = $3200, since this is the total amount of money. Let's call this equation 2.
If we rearrange equation 2 we get y = 3200 - x.
We then substitute back into equation 1 to solve for x:
0.04x + 0.052(3200 - x) = 140 ==> 0.04x + 166.4 - 0.052x = 140 ==> -0.012x = -26.4 ==> x = $2200.
Also, y = 3200 - 2200 = $1000.
Therefore, Account A has $2200 and Account B has $1000.
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