Julie earned a $1500 bonus at work for doing a good job. She placed part of the money in a regular savings account earning 2.5% annual interest. She placed the remaining amount in a money market account earning 5% interest annually. At the end of the year she earned four times more in the money market account than she did in the regular savings account. How much did Julie invest in the money market account at 5% interest? (Express your answer to the nearest dollar)

Answer 1

If there are x dollars in the 5% account, then that means the rest (1500-x) is earning 2.5%. So, now just write down what we know:

.05x = 4*.025(1500-x)

Now just solve for x.

Just as a check, with no real calculation involved, if she had put the same amount in each account, she's have earned twice as much at 5% as at 2.5%

So, she must have invested twice as much at 5% as at 2.5%