SOLUTION: Tamara invests 8000 in two different accounts. The first account has a simple interest rate of 3% and the second has a simple interest rate of 2%. How much did she invest in each a
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Question 1127979: Tamara invests 8000 in two different accounts. The first account has a simple interest rate of 3% and the second has a simple interest rate of 2%. How much did she invest in each account if the interest earned in them is the same at the end of 1 year? Answer by greenestamps(13200) (Show Source):
Algebraically, we can let x be the amount invested at 2%; then (8000-x) is the amount invested at 3%. Then since the amounts of interest are the same,
That equation is easily solved using basic algebra. I'll let you finish.
Here is a different way to solve the problem informally, using ratios and logical reasoning.
Since the ratio of the interest rates is 2:3 and the amounts of interest are the same, the money must be invested in the ratio 3:2. The ratio 3:2 means 3/5 of the money is invested at the lower rate and 2/5 of it at the higher rate.
ANSWER: 3/5 of $8000 = $4800 at 2%; 2/5 o $8000 = $3200 at 3%.
