SOLUTION: A total of $9,500 is deposited into two simple interest accounts. On one account, the annual simple interest is 9%; on the second account, the annual simple interest rate is 12%. H
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> SOLUTION: A total of $9,500 is deposited into two simple interest accounts. On one account, the annual simple interest is 9%; on the second account, the annual simple interest rate is 12%. H
Log On
Question 1161658: A total of $9,500 is deposited into two simple interest accounts. On one account, the annual simple interest is 9%; on the second account, the annual simple interest rate is 12%. How much should be invested in the 12% account so that the total interest earned is $1,020? Answer by ikleyn(52810) (Show Source):
Let x = the amount deposited at 12%.
Then the amount deposited at 9% is the rest (9500-x) dollars.
The equation for the total interest is
0.12x + 0.09*(9500-x) = 1020 dollars.
From the equation
x = = 5500.
ANSWER. $5500 deposited at 12%.
CHECK. 0.12*5500 + 0.09*(9500-5500) = 1020 dollars. ! Precisely correct !
Solved.
-------------------
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).
