A worker invested $26,000 into two accounts, one yielding 5% interest and the other yielding 12%. If he recieved a total of $1720 at the end of the year, how much did he invest at 5% ?

Question

A worker invested $26,000 into two accounts, one yielding 5% interest and the other yielding 12%. If he recieved a total of $1720 at the end of the year, how much did he invest at 5% ?

.12x+0.5(26000-x)=1720

no one can seem to figure this one out ?

Answer 1

You start off with 2 equations and 2 unknowns:

x + y = 26,000

x(0.05) + y(0.12) = 1720

You solve for y in the first equation (y = 26,000 - x) and use it to have only one unknown in your second equation:

x(0.05) + (26,000 - x)(0.12) = 1720

Now you just solve for x:

0.05x - 0.12x + 3120 = 1720

-0.07x = -1400

x = 20,000

Your answer is $20,000.

Answer 2

The basic equation is Interest = principal (rate) Time Since it is for one year, T = 1 The Principal must be split so let P₁ = x and P₂ = 26000-x

I + PRT; 1720 = .12x + .05 ( 26000 - x)