Question

Keisha has a total of $6000 to invest in two accounts for 1 year. One account pays 5% simple interest and the other pays 6% simple interest. How much should she invest in each account so that the total interest earned is $335?

Answer 1

Answer: He invest $2500 in account with rate of interest 5% and invest $3500 in account with 6% of interest so that the total interest earned is $335.

Explanation:

Given: The rate of interest for account 1= 5%=0.05

The rate of interest for account 2= 6%=0.06

Let P be the Principal amount Keisha invested in the account with 5% interest .

Then the amount she will invest in account with 6% interest= 6000-P

Time = 1 year

The simple interest is given by:-

`S.I.=Prt`

Simple interest for account 1=
`P(0.05)(1)=0.05P`

Simple interest for account 2=
`(6000-P)(0.06)(1)=360-0.06P`

According to the question,

Total Interest =$335

`\Rightarrow0.05P+360-0.06P=335\\\Rightarrow\ -0.01P=335-360\\\Rightarrow\ -0.01P=-25\\\Righgtarrow\ P=2500`

So, he invest in account with 5% interest= $2500

He invest in account with 6 % interest=$6000-$2500=$3500