Finance invested amount for each

Question

Monico invests a total of $25,000 in two accounts paying 8% and 14% annual interest, respectively. How much was invested in each account if, after one year, the total interest was $2,780.00. Find the amount invested at 8% and 14%?

Answer 1

Hi Prince. One lump sum, two accounts, and two unique interest rates.

$12,000 was invested in the one account earning 8% interest.

$13,000 was invested in the other account earning 14% interest.

A larger dollar amount of the $25,000 investment, invested at a higher interest rate, generates and contributes a larger amount to the total annual interest earned of $2,780.

Interest on each account would be calculated as follows:

$12,000 x .08 = $960

$13,000 x .14 = $1,820

Total interest: $960 + $1,820 = $2,780

Hope this helps!