Amelia's parents and grand parents have both opened savings accounts to save for Amelia's education this year. Amelia's parents' savings account earned 5% interest and her grandparents account earned 8% interest. This year the two savings accounts have earned a total of $460 in interest. At the beginning of the year, the two accounts were worth a total of $6400. Determine the current values of both savings account.
Let x be the parents' account value and y be the grandparents account value t the beginning of the year.
x (0.05) + y (0.08) = 460
x + y = 6400
x + 1.6 y = 9200
0.6 y = 2800
y = $4666.67
x = $1733.33
To get the current values, add the interest gained in the previous year.
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