A man invests savings into two accounts-

Question

A man invests his savings in two accounts, one paying 6 percent and the other paying 10 percent simple interest per year. He puts twice as much in the lower-yielding account because it is less risky. His annual interest is 5676 dollars. How much did he invest at each rate?

Answer 1

Let N be the amount invested at 10%. The words translate to this equation: 0.06 (2N) + 0.10 N = 5,676. The left side reduces to 0.22 N, so N = $25,800 invested at 10% and 2N = $51,600 invested at 6%. You can check this result by adding 0.10 (25,800) + 0.06 (51,600) = 5,676.