Question 1199889
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An investment adviser invested $14,000 in two accounts. 
One investment earned 5% annual simple interest, 
and the other investment earned 2.5% annual simple interest. 
The amount of interest earned for 1 year was $535. 
How much was invested in each account?
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<pre>
Let x be amount invested at 5% annually.

Then the amount invested at 2.5% is the rest (14000-x) dollars.


5% investment generates the annual interest of 0.05x dollars.

2.5% investment generates the annual interest of 0.025*(14000-x).


The totall annual interest equation is

    0.05x + 0.025*(14000-x) = 535  dollars.


Simplify this equation and find x

    0.05x + 0.025*14000 - 0.025x = 535,

    0.05x - 0.025x = 535 - 0.025*14000

        0.025x     =     185

             x     =     185/0.025 = 7400.


Thus $7400 invested at 5%  and the rest,  $14000 - $7400 = $6600  invested at 0.025%.    <U>ANSWER</U>


<U>CHECK</U>.  0.05*7400 + 0.025*6600 = 535 dollars, the total annual interest.   ! correct !
</pre>

Solved.


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