SOLUTION: Katy invests in a total of $24,000 in two accounts. The first account earned a rate of return of 12% ( after a year). However, in the second account suffered a 8% loss in the same
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Question 1138115: Katy invests in a total of $24,000 in two accounts. The first account earned a rate of return of 12% ( after a year). However, in the second account suffered a 8% loss in the same period. At the end of one year , the total amount of money gained was $-120.00. How much was invested into each account? Answer by VFBundy(438) (Show Source):
You can put this solution on YOUR website! 12% return:
Principal = p
Rate = 0.12
Interest = 0.12p
8% loss:
Principal = 24000 - p
Rate = -0.08
Interest = -0.08(24000 - p) = -1920 + 0.08p
0.12p + (-1920 + 0.08p) = -120
0.12p - 1920 + 0.08p = -120
0.20p = 1800
p = 9000
12% return:
Principal = p = $9000
8% loss:
Principal = 24000 - p = $15000
