High School

Susie Q has dollars to invest. She invests some of the money at the Pretty Penny Bank, which compounds annually at a certain percent. She invests the rest of the money at the Five and Dime Bank, which compounds annually at another percent. After two years, Susie has a total of a certain amount. How much did Susie Q originally invest at the Pretty Penny Bank, in dollars?

Answer :

Final answer:

To find out how much Susie originally invested at the Pretty Penny Bank, set up two equations using the compound interest formula and solve for x.

Explanation:

To solve this problem, we can set up two equations using the compound interest formula. Let's say Susie initially invests $x at the Pretty Penny Bank and $y at the Five and Dime Bank. After two years, the total amount she has is given as $z.

The compound interest formula is A = P(1 + r/n)^(nt), where A is the total amount after time t, P is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.

Using this formula for the two banks, we get the equations:

x(1 + r1/100)^2 + y(1 + r2/100)^2 = z

From here, you can substitute the given values and solve for x to find out how much Susie originally invested at the Pretty Penny Bank.

Learn more about Compound interest here:

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