Question

a person plans to invest twice as much money in a lord abbett developing growth B account at 8.2% annual interest as in a bridgeway micro-cap limited account at 21.5% annual interest. how much should the person invest in each account to earn a total of $758 in one year?

Answer 1

The amount invested in the account that paid 8.2% is $4,000 and the amount invested in the account that paid 21.5% is $2,000

Explanation:

Let

2x -----> the amount invested in the account that paid 8.2%

x -----> the amount invested in the account that paid 21.5%

in this problem we have

`8.2\%=8.2/100=0.082\\21.5\%=21.5/100=0.215`

we know that

`2x(0.082)+x(0.215)=758`

Solve for x

`0.164x+0.215x=758`

`0.379x=758`

`x=\$2,000`

so

`2x=\$4,000`

therefore

The amount invested in the account that paid 8.2% is $4,000 and the amount invested in the account that paid 21.5% is $2,000