SOLUTION: I am having a problem of putting the following into an linear equation. A company invested $42000 into two simple interest accounts. The annual interest rate on one of the account

Question 989770: I am having a problem of putting the following into an linear equation. A company invested $42000 into two simple interest accounts. The annual interest rate on one of the accounts is 4.5% while the rate on the other is 6%. How much should the company invest in each account so that the two accounts will produce an equal annual interest account?
Answer by htmentor(1343) (Show Source): You can put this solution on YOUR website!
The annual interest earned on each account is I = P*r, where P = the principal and r = the interest rate
Let P1 and P2 be the amounts invested in each account
The total amount, P = P1 + P2
The interest earned on account 1 will be P1*r1 = 0.045*P1
The interest earned on account 2 will be P2*r2 = 0.06(P-P1)
Setting the two amounts equal to each other, and putting in all the numbers, we have
0.045P1 = 0.06(42000-P1)
Solving for P1 gives P1 = 24000
Therefore P2 = 18000
Ans: 24000, 18000
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