Juanita has ?$40,000 to invest in two accounts that pay simple interest on an annual basis.

Question

One account pays 6?% in simple? interest, and the other pays 3?% simple interest. How much would she have to invest in each account to earn a total interest of 1,650 after one? year?

Answer 1

a + b = 40000 -----> a = 40000 - b

.06a + .03b = 1650

 

.06(40000 - b) + .03b = 1650

2400 - .06b + .03b = 1650

-.03b = - 750

b = 25000

 

a = 40000 - 25000 = 15000

 

Hope this helps!