Question

You invested $28,000 in two accounts paying 3% and 6% annual interest respectively if the total interest earned for the year was 1516 how much was invested at each rate. The amount invested at 3% isThe amount invested at 6% is

Answer 1

Solution

For this case we have the following:

X= amount invested for the 3% interest

Y= amount invested for the 6% interest

We can assume simple interest so we can do this:

0.03X + 0.06Y= 1516 (1)

And the other equation is:

X+ Y = 28000 (2)

Solving for X from the (2) equation we have:

X= 28000 -Y

Replacing in the first equation we have:

0.03(28000-Y) + 0.06Y = 1516

Solving for Y we have:

840 -0.03Y + 0.06Y = 1516

0.03Y= 676

Solving for Y we got:

Y= 676/0.03= 22533.33

X= 28000- 22533.33= 5466.67