Lorenzo invested $26,000 in two accounts; one pays 4% simple interest and the other pays 6% simple interest.

Question

At the end of the first year, Lorenzo's total return was $1320. How much did he invest in each account?

Answer 1

4X + 6(26K-X) = 132K

-2X = (132-156)K

X = 24K/2 = $12,000 invested at 4%

26K-X = $14,000 invested at 6%

.04 x 12K + .06 x 14K = 480 + 840 = $1320