SOLUTION: a total of $15,000 was invested in two savings accounts. one account pays 4% annual simple intrest and the other 6% annual simple intrest. if the total intrest earned after 1 year
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Question 1113470: a total of $15,000 was invested in two savings accounts. one account pays 4% annual simple intrest and the other 6% annual simple intrest. if the total intrest earned after 1 year was $760, how much was invested at each rate? Answer by ikleyn(52775) (Show Source):
Let x = the amount invested at 4%.
Then the amount invested at 6% was (15000-x).
Your equation is THIS
interest + interest = total interest
0.04x + 0.06*(15000-x) = 760
0.04x + 0.06*15000 - 0.06x = 760
-0.02x = 760 - 0.06*15000 = -140 ====> x = = 7000.
Answer. $7000 was invested at 4%; the rest $15000 - $7000 = $8000 was invested at 6%.
Check. 7000*0.04 + 8000*0.06 = 760. ! Correct !
Solved.
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It is a typical and standard problem on investment.
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).
