Math Problem Statement
Bill invests a total of $4000 for one year in two savings accounts, a money market account and a passbook account. In his money market account, he earns 5% simple interest. In his passbook account, he earns 2% simple interest. At the end of one year, Bill earned a total of $110 interest in his two savings accounts. Which equation is used to calculate x, the amount Bill invested in his money market account?
(4000 − x)(0.05)(1) + (x)(0.02)(1) = 110
(x)(0.05)(1) + (4000 − x)(0.02)(1) = 110
(x)(0.05)(1) + (x)(0.02)(1) = 4000
(4000 − x)(5)(1) + (x)(2)(1) = 110
(x)(5)(1) + (4000 − x)(2)(1) = 110
Solution
To solve the problem, we need to carefully analyze the scenario and match the appropriate equation.
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Define variables:
- Let represent the amount Bill invested in the money market account.
- Therefore, is the amount Bill invested in the passbook account.
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Calculate interest for each account:
- Interest from the money market account:
- Interest from the passbook account:
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Total interest:
- The total interest earned from both accounts is $110. Therefore:
This corresponds to:
Answer:
The correct equation is:
Would you like a detailed walkthrough of solving this equation for ?
5 Related Questions:
- How do you calculate simple interest for different time periods?
- What are the key differences between simple and compound interest?
- Can you show how to simplify and solve the selected equation for ?
- What are other real-life applications of interest calculations?
- How does varying interest rates affect total interest earned?
Tip:
Always double-check units (e.g., percentages, time in years) to ensure consistent calculations in interest problems.
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Math Problem Analysis
Mathematical Concepts
Algebra
Simple Interest Calculation
Linear Equations
Formulas
Simple interest formula: I = P * r * t
Linear equation formation
Theorems
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Suitable Grade Level
Grades 8-10
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