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Dave has $3000 more in a passbook account than in a money market.
The passbook account pays 8%, and the money market account pays
10%. How much is invested in each account if the annual interest that he
gets on the 8% investment is $80 more than the interest on the 10%
investment?

Respuesta :

The amount in the passbook account is $11,000 and the money in the money market account is $8000

Let:

a represent the unknown amount in the passbook account

b represent the unknown amount in the money market account

From the question, the following information can be gathered:

  • The money in the passbook account exceeds the amount in the money market account.

This information can be represented with this equation : a - b = 3000

  • The interest paid on the passbook account exceeds the interest paid on the money market account.

This information can be represented with this equation : 0.08a - 0.10b = 80

The two equations gotten above would be solved using simultaneous equation and the elimination method

a - b = 3000 equation 1

0.08a - 0.10b = 80 equation 2

Multiply equation 1 by 0.08

0.08 - 0.08b = 240 equation 3

Subtract equation 2 from 3

0.02b = 160

Divide both sides of the equation by 0.02

b = 8000

Substitute for b in equation 1

a - 8000 = 3000

Add 8000 to both sides

a = 11,000

To learn more about simultaneous equations, please check: brainly.com/question/23589883?referrer=searchResults

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