Question 1172087: Mr. Wilson invested money in two accounts. His total investment was $40,000. If one account pays 8% in interest and the other pays 2% in interest, how much does he have in each account if he earned a total of $1,760 in interest in 1 year?
Answer by ikleyn(52776)   (Show Source):
You can put this solution on YOUR website! .
Let x = how much was invested at 8%.
Then 40000-x was invested at 2%.
The total interest equation is
0.08x + 0.02(40000-x) = 1760 dollars.
From the equation
x =  = 16000.
ANSWER. $16000 invested at 8% and the rest, 40000-16000 = 24000 dollars invested at 2%.
CHECK. 0.08*16000 + 0.02*24000 = 1760 dollars, total annual interest. ! Precisely correct !
Solved.
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It is a standard and typical problem on investments.
If you need more details, or if you want to see other similar problems solved by different methods, look into the lesson
- Using systems of equations to solve problems on investment
in this site.
You will find there different approaches (using one equation or a system of two equations in two unknowns), as well as
different methods of solution to the equations (Substitution, Elimination).
Also, you have this free of charge online textbook in ALGEBRA-I in this site
- ALGEBRA-I - YOUR ONLINE TEXTBOOK.
The referred lesson is the part of this online textbook under the topic "Systems of two linear equations in two unknowns".
Save the link to this online textbook together with its description
Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson
to your archive and use it when it is needed.
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