SOLUTION: Jolene invests her savings in two bank accounts, one paying 5 percent and the other paying 8 percent simple interest per year. She puts twice as much in the lower-yielding account
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Question 1150712: Jolene invests her savings in two bank accounts, one paying 5 percent and the other paying 8 percent simple interest per year. She puts twice as much in the lower-yielding account because it is less risky. Her annual interest is 6552 dollars. How much did she invest at each rate?
Let x = amount at the 8% account.
Then the amount at 5% interest account is 2x dollars.
The setup equation is
0.08*x + 0.05*(2x) = 6552 dollars.
From the equation
x = = 36400.
ANSWER. $36400 invested at 8% and 2*36400 = 72800 dollars invested at 5%.
CHECK. 0.08*36400 + 0.05*72800 = 6552 dollars. ! Correct !
Solved.
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It is a standard and typical problem on investments.
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).
