Marco has $8,000 to save for his daughter's college education. He wants to divide it between Account A, which pays 3.2% interest per year, and Account B, which pays 8% interest per year. How much should he invest in each account if he wants the interest on the total investment to be 6.5%?

Question

Mathematics

Zackary Brandt

15 December, 15:54

Marco has $8,000 to save for his daughter's college education. He wants to divide it between Account A, which pays 3.2% interest per year, and Account B, which pays 8% interest per year. How much should he invest in each account if he wants the interest on the total investment to be 6.5%?

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Answers (2)

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Maximus · Answer 1

2500 and 5500

Step-by-step explanation:

To get an amount of an invesment we need the formula of interest which is $ * (1+i) where $ is the money and i is the interest rate, so you are going to suppose that you are going to invest for one year.

2500 * (1+0,032) + 5500 (1+0,08) = 8520 so the extra amount is 520 (due to the interest) 520/8000 = 0,065 then 6,5%.

Don't forget that in this case the time is one year but this variable affect the result.

Karissa Hood · Answer 2

Your answer is $2,500 at 3.2%, $5,500 at 8%