Brian has money in two savings accounts. One rate is 6% and the other is 14%. If he has $500 more in the 14% account and the total interest is $126, how much is invested in each savings account?

Answer 1

.06x + .14(x+500) = 126

x =$280 invested at 6%

x+500= $780 invested at 14%

.06(280) + .14(780) = 126

average rate of return: 126/(280+780) = 126/1060 = about 11.9%

6 is within 5.9 of 11.9

14 is within 2.1 of 11.9

5.9/2.1 = about 2.8 = 780/280

Brian needed about 2.8 times as much 14% as 6% to get 11.9%