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Calculating Interest

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If you invest $20000 into two different accounts paying 7% and 9% annually compounded monthly and your total interest for the year is $1550, how much was invested at each rate?
 Aug 7, 2013

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x + y = 20000 (1)
0.07x + 0.09y = 1500 (2)

multiply (1) with 0.07

0.07x + 0.07y = 1400 (3)

subtract (3) from (2)

0.02y = 100 so y=5000 and x=15000
 Aug 9, 2013

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