Investing money

Question

Last year Melissa had $20,000 to invest. She invested some of it into an account that paid 8% simple interest and she invested the rest in an account that paid 6% simple interest per year. After one year she received a total of 1420 in interest. How much did she invest in each account

Answer 1

1420/20000 = 7.1% average rate of interest

8-7.1 = .9

7.1-6 = 1.1

ratio of the investmens was 11:9 more at 8 than 6%

11/9 = x/(20000-x)

22,000 -11x = 9x

20x = 22,000

x = $11,000 invested at 8%

20000= $9000 invested at 6%

.08(11) + .06(9) = .88+.54 = 1.42 = $1,420 intest on both