Danielle invests part of her $5000 savings into a savings account at 3% and part into a GIC at 4% simple interest. If she earns $189.50 interest from her two investments, calculate how much she invested at each rate.

Answer 1

Let the amount invested in the savings account be x
The amount invested in the GIC will be $5000 - x
The interest earned from the savings account at 3% is x * 3/100
The interest earned from the GIC at 4% is (5000 - x) * 4/100
When you add the interest earned from both accounts, you get x * 3/100 + (5000 - x) * 4/100 = $189.5
Multiply through the parentheses to get x * 3/100 + 20000/100 - (x * 4/100) = $189.50
Multiply the denominators and organize the equation to get x * 3 + 20000 - 4x = $189.50 * 100
Combine like terms to get x * -1 + 20000 = $18950
Move the 20000 to the other side of the equation to get x * -1 = $18950 - 20000
Combine like terms to get x * -1 = -$1050
Divide both sides of the equation by -1 and simplify to get x = $1050
She invested $1050 at 3% interest and the rest at 4% interest, which is $5000 - $1050 = $<<5000-1050=3950>>3950. Answer: \boxed{1050, 3950}.