Michael perez deposited a total of $2000 with two savings institutions. one pays interest at a rate of 6%/year, whereas the other pays interest at a rate of 7%/year. if michael earned a total of $136 in interest during a single year, how much did he deposit in each institution? (let x and y denote the amount of money, in dollars, invested at 6% and 7%, respectively.)
Answer:
He invested $400 in the account with interest at 6%, while investing $1600 in the account with interest at 7%.
Explanation:
Given that Michael Perez deposited $ 2000 in two different accounts that granted an interest of 6% and 7% per year respectively, and that at the end of the year he obtained $ 136 in interest, to determine how much money he invested in each account it is necessary to perform the following calculation:
2000 = 100
136 = X
((136 x 100) / 2000) = X
13600/2000 = X
6.8 = X
Thus, the benefits obtained were 6.8% per year. Thus, the annual 7% of the account with the highest interest rate must subtract a 0.2% yield, with which Michael Perez invested 2/10 parts of his money in the account with interest at 6% and 8/10 in the account with interest at 7%.
Thus, in the account with interest at 6% he invested $ 400, while in the account with interest at 7% he invested $ 1600.