# Simple Interest?

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You have been given $20 000 from your parents to place in two different investments (Silicon World and Solar Energy). Silicon World offers an annual interest rate of 10% and Solar Energy offers a 6% annual interest rate. Together the investments return a total of $1800 at the end of the year. Determine the amount of money placed in each investment. Justify your answer?

You have been given $20 000 from your parents to place in two different investments (Silicon World and Solar Energy). Silicon World offers an annual interest rate of 10% and Solar Energy offers a 6% annual interest rate. Together the investments return a total of $1800 at the end of the year. Determine the amount of money placed in each investment. Justify your answer?

##### 1 Answer

Amount of money placed in Silicon world =

and Amount of money placed in Solar Energy =

#### Explanation:

Given: $20 000

Place in two different investments (Silicon World and Solar Energy).

Let the amount placed in Silicon world be

Silicon World offers an annual interest rate of 10%

So the interest on this amount will be given by:

where, P is principal amount invested

R is rate of interest, and

T is duration of investment which is given to be 1 year.

Now the amount invested in Solar Energy will be

It offers a 6% annual interest rate, so the simple interest at the end of 1 year on this will be:

Given that: together the investments return a total of $1800 at the end of the year.

and Amount of money placed in Solar Energy was $20000-15000 = $5000#

Cross heck:

1 : Silicon world: Amount invested: $15000 at rate 10% for 1 year will return interest:

and

2: Solar energy : amount invested : $5000 at rate of 6% for 1 year will return interest :

Total returns from 1 and 2 :