Please Help. How do i go about solving this ???

Question

 

tyler has two savings accounts that his grandparents opened for him. One of the accounts pays 10% annual intrest, whereas the other pays 12% annual intrest. If you have 200$ more intrest at 12% than you ivsted at 10%, how much do you have invested in each account if the total amount of intrest you earn a year is $112?

 

Answer 1

Tyler has two savings accounts. 

 

10% annual interest account has a principal value = p.

12% annual interest account has a principal value = p + 200

 

Total Interest

= $112

= 10% p + 12% (p + 200)

= 0.10 p + 0.12 p + 0.12(200)

= 0.22 p + 24

 

Isolate p on one side of the equation to get: 

0.22 p = 112 - 24 = 88

 

p = 88 / 0.22 = $400

p + 200 = $600

 

Therefore, $400 is invested in the 10% interest rate account. $600 is invested in the 12% interest rate account.