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Math Help - Compound interest!

  1. #1
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    Compound interest!



    A company invests $5000, some into an account paying 5.2% simple interest and the remainder in an account paying 4.5% simple interest per annum. After 2 years the $50000 had grown to $54976. How much went into each account?
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  2. #2
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    Quote Originally Posted by niruja View Post
    A company invests $50000, some into an account paying 5.2% simple interest and the remainder in an account paying 4.5% simple interest per annum. After 2 years the $50000 had grown to $54976. How much went into each account?
    At time zero, you have: (x+y)*50000

    Where x + y =1 as they are percents of the principal that is invested. We'll say x% earns 5.2% simple interest.

    After two years we should have:

    x*50000*(1+2*.052) + y*50000*(1+2*.045) = 54976

    Dividing by 50000 gives us:

    1.104x + 1.09y = 1.09952

    We also know that x + y =1 , so now we have two equations with two unknown variables. I believe you can now solve for x and y.
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