Math Problem Statement

Susan placed $5,600 into three investments: Account A paid 10% simple interest, Account B paid 12% simple interest, and Account C paid 18% simple interest. The total interest earned after one year is $792. If the amount of money placed in Account C is $900 more than the amount placed in Account B, find the amount of each investment in dollars.

Solution

Let the amount of money placed in Account A, Account B, and Account C be denoted as AA, BB, and CC respectively. Based on the problem, we can set up the following equations:

  1. The total amount invested: A+B+C=5600A + B + C = 5600

  2. The total interest earned from all three accounts: 0.10A+0.12B+0.18C=7920.10A + 0.12B + 0.18C = 792

  3. The amount placed in Account C is $900 more than the amount placed in Account B: C=B+900C = B + 900

Now, we can solve this system of equations.

Step 1: Substitute C=B+900C = B + 900 into the first and second equations.

  • From A+B+C=5600A + B + C = 5600, substitute CC: A+B+(B+900)=5600A + B + (B + 900) = 5600 Simplifying: A+2B+900=5600A + 2B + 900 = 5600 A+2B=4700(Equation 1)A + 2B = 4700 \quad \text{(Equation 1)}

  • From 0.10A+0.12B+0.18C=7920.10A + 0.12B + 0.18C = 792, substitute CC: 0.10A+0.12B+0.18(B+900)=7920.10A + 0.12B + 0.18(B + 900) = 792 Simplifying: 0.10A+0.12B+0.18B+0.18×900=7920.10A + 0.12B + 0.18B + 0.18 \times 900 = 792 0.10A+0.30B+162=7920.10A + 0.30B + 162 = 792 0.10A+0.30B=630(Equation 2)0.10A + 0.30B = 630 \quad \text{(Equation 2)}

Step 2: Solve the system of two equations.

We now have the system of equations:

  1. A+2B=4700A + 2B = 4700
  2. 0.10A+0.30B=6300.10A + 0.30B = 630

Solve Equation 1 for AA:

A=47002BA = 4700 - 2B

Substitute A=47002BA = 4700 - 2B into Equation 2:

0.10(47002B)+0.30B=6300.10(4700 - 2B) + 0.30B = 630 Simplifying: 4700.20B+0.30B=630470 - 0.20B + 0.30B = 630 470+0.10B=630470 + 0.10B = 630 0.10B=1600.10B = 160 B=1600B = 1600

Find AA and CC:

  • From A=47002BA = 4700 - 2B: A=47002(1600)=47003200=1500A = 4700 - 2(1600) = 4700 - 3200 = 1500

  • From C=B+900C = B + 900: C=1600+900=2500C = 1600 + 900 = 2500

Final Answer:

  • Amount in Account A: $1,500
  • Amount in Account B: $1,600
  • Amount in Account C: $2,500

Let me know if you need any more details or clarifications!


Here are 5 related questions to deepen your understanding:

  1. What would happen to the total interest if the amount invested in Account C was increased by $500?
  2. How would the solution change if the interest rate of Account B was reduced to 10%?
  3. Can you express the total interest formula for nn different accounts with various interest rates?
  4. What is the total percentage return Susan earned on her total investment?
  5. How would you solve this problem using matrices?

Tip: When dealing with multiple investments, always try to express relationships between accounts as equations to simplify solving.

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Math Problem Analysis

Mathematical Concepts

Algebra
Systems of Equations
Simple Interest

Formulas

Simple Interest Formula: Interest = Principal × Rate × Time
System of Linear Equations

Theorems

Linear System Solving Techniques

Suitable Grade Level

Grades 10-12