A man invests a certain amount of money at 2% and $800 more than that amount in another account at 4% interest. At the end of the one year, he earned $112 in interest. How much money was invested in each account?
As the time is only 1 year, it does matter whether it is simple or compound interest.
Define each amount of money using a variable.
Let the smaller amount of money (at 2%) be
The larger amount (at 4%) is
The interest on the first amount =
The interest on the larger amount =
The total interest is