Katy invests a total of $20,000 in two accounts paying 13% and 15% simple interest, respectively. How much was invested in each account if, after one year, the total interest was $2,690.00.

Question

Enter an equation that uses the information as it is given that can be used to solve this problem. Use  as your variable to represent the amount of money invested in the account paying 13% simple interest.

B) The answers are:

$ ----- was invested at 13% and

$ ----- was invested at 15%.

Answer 1

2,690/20,000 = .1345 = average 13.45% return which is a little closer to 13 than to 15, so more will be invested at 13 than at 15% Over half of $20,000 will be invested at 13%, less than half at 15%

.13x + .15(20,000-x) = 2,690

-.02x = 2,690-3000 = -310

x = 310/.02= $15,500 at 13%

20000-15500 = $4,500 at 15%

.13(15,500) = 2015

15(4,500) = 675

2015 + 675 = 2690