# 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?

$820 #### Explanation: We know the formula of simple Interest : $I = \frac{P N R}{100}$[ Where I = Interest, P = Principal, N = No of years and R = Rate of interest] In the first case, P =$7000. N = 1 and R = 11%
$S o , I n t e r e s t \left(I\right) = \frac{7000 \cdot 1 \cdot 11}{100} = 770$
P = $1000, N = 1 R = 5% So, $I n t e r e s t \left(I\right) = \frac{1000 \cdot 1 \cdot 5}{100} = 50$Hence total Interest =$770 + $50 =$820