Problem

Miles invests $4500 in two different accounts. The first account paid 14%, the second account paid 4% in interest. At the end of the first year he had earned $390 in interest. How much was in each account?
$ at 14%$ at 4%

Answer

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Answer

So, Miles invested $2100 at 14% and $2400 at 4%.

Steps

Step 1 :Let's denote the amount of money invested at 14% as x and the amount of money invested at 4% as y.

Step 2 :From the problem, we know that the total amount of money invested is $4500, so we have the equation x+y=4500.

Step 3 :We also know that the total interest earned is $390, and the interest is calculated as 14% of x and 4% of y, so we have the equation 0.14x+0.04y=390.

Step 4 :We can solve the first equation for x, which gives us x=4500y.

Step 5 :Substitute x=4500y into the second equation, we get 0.14(4500y)+0.04y=390, which simplifies to 6300.1y=390.

Step 6 :Solving this equation for y, we get y=2400.

Step 7 :Substitute y=2400 back into the first equation, we get x=45002400=2100.

Step 8 :So, Miles invested $2100 at 14% and $2400 at 4%.

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