Jolene invests her savings in two bank accounts, one paying 6 percent and the other paying 8 percent simple interest per year.

Question

Jolene invests her savings in two bank accounts, one paying 6 percent and the other paying 8 percent simple interest per year. She puts twice as much in the lower-yielding account because it is less risky. Her annual interest is 6520 dollars. How much did she invest at each rate?

Answer 1

.06(2x) + .08x = 6520

.2x = 6520

x = 6520/.2 = $32,600 invested at 8%

2x = $65,200 invested at 6%

.06(65,200) + .08(32,600) = 3912 + 2608 = $6,520 total interest