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 2920 dollars. How much did she invest at each rate? Amount invested at 6 percent interest is $ 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 2920 dollars . How much did she invest at each rate ? Amount invested at 6 percent interest is $​

Answer 1

• $14,600 at 8%
• $29,200 at 6%

Explanation:

The total amount of interest earned is the sum of the amounts of interest earned by each of the accounts.

Setup

Let x represent the amount invested at 8%. Then 2x is the amount invested at the lower rate of 6%. The interest earned by each investment is the product of the amount and the interest rate. The total earned is ...

0.08x +0.06(2x) = 2920

Solution

We can simplify this equation, then divide by the x-coefficient.

0.20x = 2920 . . . . . . . . . . . simplify

x = 14600 . . . . . . . . . . divide by 0.2

2x = 29200 . . . . . . . . multiply by 2

Jolene invested $29,200 at 6%, and $14,600 at 8%.