00:01
All right, so here we have an example of systems of equations as it applies to interest rates.
00:05
So we are told that there are $50 ,000, which the grandmother needs to invest, and we've got two different accounts where she can invest it.
00:14
So there's a non -insured account which makes 15 % interest and an insured account, which makes 7 % interest.
00:22
Now we want to figure out how much is in each given that, right, she needs $6 ,000.
00:31
In annual.
00:33
That's the amount of money she needs in interest from both accounts.
00:38
Well, let's look at the information we have and see if we can create some equations.
00:43
Firstly, we know that she's going to invest $50 ,000.
00:47
So the amount of money in the non -insured and, right, plus the amount of money in the insured, i has to equal $50 ,000.
00:57
Second equation, right, she needs $6 ,000 in an income.
01:01
Annual interest.
01:02
Well, how much is she making an interest? well, 15 % of the amount of money in n is what she's going to get an interest, plus 0 .07 of the amount of money she gets in the insured account.
01:16
It's going to equal, has to equal rather, be 6 ,000...