Interest Problem: Julian deposits money into two different savings accounts. He deposits $600 more into Account B than Account A. After a certain amount of time, Account A has earned $180 at a rate of 4%, and Account B has earned $375 at a rate of 5%. How much did Julian initially deposit into each account?

A.What equation is used to solve this problem? What does each variable represent?
B.Identify the given information. What do you know about P?
C.Enter the given information into the equation.
D.Solve the equation.
E.State the solution.

Question

Interest Problem: Julian deposits money into two different savings accounts. He deposits $600 more into Account B than Account A. After a certain amount of time, Account A has earned $180 at a rate of 4%, and Account B has earned $375 at a rate of 5%. How much did Julian initially deposit into each account?

A.What equation is used to solve this problem? What does each variable represent?
B.Identify the given information. What do you know about P?
C.Enter the given information into the equation.
D.Solve the equation.
E.State the solution.

saranya · Answer

Let the deposit in Account A be x
4% of x = 180
Assuming the deposit is for one year,
x = 4,500
Deposit in Account B 
= x + 600
= 5100
Interest at 5% for one year
= 255
Interest earned as per the problem is 375
= 255 x 1.47
The deposit in Account B is $7,500
The deposit in Account A is $6,615