SOLUTION: A total of $20,000 is invested in two accounts earning simple interest. For one account, the annual intest rate is 5% and for the secong account the rate is 3%. After one year, the

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: A total of $20,000 is invested in two accounts earning simple interest. For one account, the annual intest rate is 5% and for the secong account the rate is 3%. After one year, the      Log On

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Question 135605: A total of $20,000 is invested in two accounts earning simple interest. For one account, the annual intest rate is 5% and for the secong account the rate is 3%. After one year, the total amount of interest earned was $870. How much was invested in each account?
Answer by checkley77(12844) About Me  (Show Source):
You can put this solution on YOUR website!
.05X+.03(20,000-X)=870
.05X+600-.03X=870
.02X-.02X=870-600
.02X=270
X=270/.02
X=13,500 INVESTED @ 5%
20,000-13,500=6,500 INVESTED @ 3%
PROOF
.05*13,500+.03*6,500=870
675+195=870
870=870