Question 607548: b. David invests $12000 in two savings accounts. One account is paying 10% simple interest and the other account is paying 6% simple interest. If in one year, the same interest is earned on each account, how much was invested at each rate?
Answer by Earlsdon(6294)   (Show Source):
You can put this solution on YOUR website! Let x = the amount David invested in the 10% account. The remainder, that's $12,000-x is the amount he invested in the 6% account.
The earnings on theses two investments can be expressed as:
0.01(x) and 0.06($12,000-x) and these earnings are to be equal, so...
0.01x = 0.06($12,000-x) Simplify and solve for x.
0.01x = $720-0.06x Add 0.06x to both sides.
0.07x = 720 Divide both sides by 0.07
x = $10,285.71 and $12,000-$10,285,71 = $1,714.29
David invests $10,285.71 in the 10% account and $1,714.29 in the 6% account to earn the same amount from each.
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