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?

1 Answer
Oct 24, 2016

Answer:

#$1,333.33# invested at 2%
#$2,1333.33# invested at 4%

Explanation:

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 #x#
The larger amount (at 4%) is #x +800#

The interest on the first amount = #(x xx 2)/100 = color(red)((2x)/100)#

The interest on the larger amount = #color(blue)(((x+800) xx4)/100)#

The total interest is #$112#

#color(red)((2x)/100 )+ color(blue)((4(x+800))/100) = 112#

#(2x+4x+3200)/100 = 112#

#(6x +3200)/100 = 112" "larr xx 100#

#6x +3200 = 11200#

#6x = 8000#

#x = $1,333.33#

#x+ 800= $2,133.33#