Susie Q has 1000 dollars to invest. She invests some of the money at the Pretty Penny Bank, which compounds annually at 3 percent. She invests the rest of the money at the Five and Dime Bank, which compounds annually at 5 percent. After two years, Susie has a total of $1090.02. How much did Susie Q originally invest at the Pretty Penny Bank, in dollars?

Guest Aug 12, 2017

#1**+1 **

Let the amount she invested at Pretty Penny = x

So...we can call the amount invested at Five and dime = 1000 - x

So....amt invested at each bank * compounding for 2 years = final amount ....and we have that...

x(1.03)^2 + (1000 - x) (1.05)^2 = 1090.02 simplify

1.0609x + (100 - x) (1.1025 ) = 1090.02

1.0609x + 1102.5 - 1.1025x = 1090.02 combine like terms on the left

- .0416x + 1102.5 = 1090.02 subtract 1102.5 from each side

- .0416x = -12.48 divide both sides by -.0416

x = $300 invested at Pretty Penny

and

(1000 - x ) = (1000 - 300) = $700 invested at Five and Dime

CPhill
Aug 12, 2017