10
algebra

Sarah invests $5,000 in two accounts. One account pays 4% annual interest, the other pays 6% annual interest. After one year, she earns $260 in total interest. How much did she invest at 6%?

A

\2,000$

B

\2,500$

C

\3,000$

D

\3,500$

Correct Answer: C

Choice C is the correct answer. Let xx = amount at 4% and yy = amount at 6%.

Step 1: Set up the system: {x+y=50000.04x+0.06y=260\begin{cases} x + y = 5000 \\ 0.04x + 0.06y = 260 \end{cases}

Step 2: From first equation: x=5000yx = 5000 - y

Step 3: Substitute: 0.04(5000y)+0.06y=2600.04(5000 - y) + 0.06y = 2602000.04y+0.06y=260200 - 0.04y + 0.06y = 2600.02y=600.02y = 60y=3000y = 3000

Solution: $3,000 was invested at 6%

Verification:

  • $2,000 at 4%: 0.04(2000)=800.04(2000) = 80
  • $3,000 at 6%: 0.06(3000)=1800.06(3000) = 180
  • Total interest: 80+180=26080 + 180 = 260

💡 Strategic Tip: Investment problems: (principal × rate) = interest earned.

Choice A is incorrect because 0.04(3000)+0.06(2000)=120+120=240 eq2600.04(3000) + 0.06(2000) = 120 + 120 = 240 \ eq 260.

Choice B is incorrect because 0.04(2500)+0.06(2500)=100+150=250 eq2600.04(2500) + 0.06(2500) = 100 + 150 = 250 \ eq 260.

Choice D is incorrect because 0.04(1500)+0.06(3500)=60+210=270 eq2600.04(1500) + 0.06(3500) = 60 + 210 = 270 \ eq 260.