Simple interest

Question

Juanita has $27000 to invest in two accounts that pay simple interest on annual basis. One account pays 2% in simple interest and the other pays 6% simple interest. How much would she invest in each account to earn a total interest of $980 after 1 year

Answer 1

Let x = the amount of money invested at 2% interest

Let 27,000 - x = the amount of money invested at 6% interest

i = prt

i = (.02x)1    and   i = .06(27,000 - x)1

.02x +.06(27,000 - x) = 980       Multiply both sides by 100 to get rid of the decimal points.

2x + 6(27,000 - x) = 98,000

2x + 162,000 - 6x = 98,000

-4x = -64,000

x = $16,000 invested at 2%

27,000 - 16,000 = $11,000 invested at 6%