SOLUTION: Joe received a bonus of $20000 at the end of the year for exceptional performance on the job. He decides to invest the money into two different investment vehickles, one paying 5%

Question 899731: Joe received a bonus of $20000 at the end of the year for exceptional performance on the job. He decides to invest the money into two different investment vehickles, one paying 5% interest, the other 6.5% interest. At the end of the year, the total interest earned from both accounts, together, was $1240. Find the amount invested in each account.
Answer by mananth(16946) (Show Source): You can put this solution on YOUR website!
Part I 5.00% per annum ------------- Amount invested =x
Part II 6.50% per annum ------------ Amount invested = y
20000
Interest----- 1240.00

Part I 5.00% per annum ---x
Part II 6.50% per annum ---y
Total investment
x + 1 y= 20000 -------------1
Interest on both investments
5.00% x + 6.50% y= 1240
Multiply by 100
5 x + 6.5 y= 124000.00 --------2
Multiply (1) by -5
we get
-5 x -5 y= -100000.00
Add this to (2)
0 x 1.5 y= 24000
divide by 1.5
y = 16000
Part I 5.00% $ 4000
Part II 6.50% $ 16000

CHECK
4000 --------- 5.00% ------- 200.00
16000 ------------- 6.50% ------- 1040.00
Total -------------------- 1240.00

m.ananth@hotmail.ca

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