Question 86251
Interest = (Principal)(rate)(time), or I = Prt [r as a decimal, not a percent] In this case, we want to split the principal, $50,000, into two accounts, one with a rate of 8.4% and the other with a rate of 11.9%, in such a way that the two interest amounts will be equal. [Which account should more be deposited in to, the 8.4% or the 11.9%?] So, I = I, or Prt = Prt. r is given for each case [but change them to their decimal equivalents] and t = 1 year. Let the P for one account be x, then the P for the other account is 50,000 - x. Plug in the parameters into the equation Prt = Prt and solve for x.