Question

A man invests his savings in two accounts, one paying 6% and the other paying 10% simple interest per year. He puts twice as much in the lower-yielding account because it is less risky. His annual interest is $5786 dollars. How much did he invest at each rate?

Answer 1

at 10 % amount will be $26300

at 6 % amount will be $52600

Explanation:

given data

rate r1 = 6%

rate r2 = 10 %

interest = $5786

to find out

How much he invest

solution

we know man save at rate 6% and 10 %

and get interest $5786

so we consider invest amount at 10% = x

and so invest amount at 6% = 2x

so interest equation will be

0.10(x) + 0.06(2x) = 5786

0.10 x + 0.12x = 5786

0.22 x = 5786

x = 26300

so

at 10 % amount will be $26300

at 6 % amount will be $52600