Word problem on investing

Question

dilbert invests a total of 24,000$ in two accounts paying 2% and 5% annual interest, respectively. How much was invested in each account if, after one year, the total interest was $1,035.00

Answer 1

If he invests P in the 2% account...

Then he invests 24000-P in the 5% account

 

Since we are looking only at one year and the

interest is compounded annually (1 time per year)

we can set this up as simple interest.

 

I = prt 

In this case prt will be the sum of the interest

from the two accounts: 

 

1035 = P(.02)(1) + (24000-P)(.05)(1)

 

1035 = .02P + (24000-P).05

1035 = .02P -.05P + 1200

1035 - 1200 = -.03P

P = -165/-.03

P = 5500

 

He invested $5500 in the 2% account and

24000-5500 = $18500 in the 5% account

 

Hope this helps.  Let me know if you have questions.