You invested ​$27000 in two accounts paying 2% and 8% annual​ interest, respectively. If the total interest earned for the year was $1920 how much was invested at each​ rate?

Answer 1

.08x + .02(27000-x) = 1920

.08x -.02x = 1920 -..02(27000)

.06x = 1920- 540

x = 1380/.06 = 13800/6

x = $23,000 invested at 8%

27000-23000 = $4,000 invested at 2%

1920/27,000 = an average rate of return of 7 1/9%

most of the money is invested at 8%, as it's much closer to 7 1/9% than 2% is

8-7 1/9 = 8/9

7 1/9 -2 = 5 1/9 =46/9

46/8 = 23/4 = $23000/$4000