Last year, Lisa deposited $7000 into an account that paid 11% interest per year and $1000 into an account that paid 5% interest per year No withdrawals were made from the accounts. What was the total interest earned at the end of 1 year?
We know the formula of simple Interest :
In the first case,
P = $7000. N = 1 and R = 11%
For second case,
P = $1000, N = 1 R = 5%
Hence total Interest = $770 + $50 = $820