SOLUTION: An investor has a total of $10,000 to deposit in two simple interest accounts. On one account, the annual simple interest rate is 7%. On the second account, the annual simple inter
Algebra ->
Human-and-algebraic-language
-> SOLUTION: An investor has a total of $10,000 to deposit in two simple interest accounts. On one account, the annual simple interest rate is 7%. On the second account, the annual simple inter
Log On
Question 994238: An investor has a total of $10,000 to deposit in two simple interest accounts. On one account, the annual simple interest rate is 7%. On the second account, the annual simple interest rate is 8%. How much should be invested in each account so that the total annual interest earned is $785? Answer by macston(5194) (Show Source):
You can put this solution on YOUR website! .
S=amount at 7%; E=amount at 8%
.
S+E=$10000
E=$10000-S
.
0.07S+0.08E=$785
0.07S+0.08($10000-S)=$785
0.07S+$800-0.08S=$785
-0.01S=-$15
S=$1500
ANSWER 1: He should invest $1500 at 7%.
.
E=$10000-S
E=$10000-$1500
E=$8500
ANSWER 2: He should invest $8500 at 8%.
.
CHECK:
0.07S+0.08E=$785
0.07($1500)+0.08($8500)=$785
$105+$680=$785
$785=$785
.
