Question

A person invested $50,000 into two accounts that pay 4 and 6% simple interest annually, respectively. How do you find the amount invested into the two accounts if the total interest earned after one year is $2400?

Answer 1

The person invested `$30000` at `4%` SI and `$20000` at `6%` SI

Explanation:

Let the person invested `$x` at `4%` SI.

Then the person invested `$(50000-x)` at `6%` SI.

The total interest earned after one year is `x*0.04+(50000-x)*0.06` which is equal to `$2400`

So `0.04x-0.06x+3000=2400 or -0.02x = -600 or x=600/0.02=$30000 :. 50000-x=50000-30000=$20000`

Therefore, the person invested `$30000` at `4%` SI. and invested `$20000` at `6%` SI.[Ans]