National savings is equal to the sum of private savings and

National savings is equal to the sum of private savings and public savings. To make our notation a bit easier, we will call national savings S, private savings V, and public savings U. So in other words,

S = V + U.

If private savings \'V\' = 0.75S and total savings \'S\' equals $4.20 billion, solve for public and private savings.

Public savings: $

Private savings: $

Solution

S = $4.20 billion

V = 0.75 × S = 0.75 × $4.20 billion = $3.15 billion

U = S – V = $4.20 billion - $3.15 billion = $1.05 billion

Public savings = $1.05 billion

Private savings = $3.15 billion