Question

Bax invested a total of $2000 in two simple interest accounts. Account A earns 3% interest and Account B earns 5% interest. Bax earned a total of $75 interest after one year. How much did Bax invest in each account?

Answer 1

Bax invested a total of $2000 in two simple interest accounts. Account A earns 3% interest and Account B earns 5% interest. Bax earned a total of $75 interest after one year. How much did Bax invest in each account?

Let, The amount invested in Account A=x

Then, the amount invested in Account B=2000-x

The formula of Simple Interest =
`(Principle*Rate*Time)/(100)`

Interest earned in Account A in 1 year=
`(x*3*1)/(100)`

Interest earned by Account A=
`(3x)/(100)`

Interest earned in Account B in 1 year=
`((2000-x)*5*1)/(100)`

Interest earned by Account B=
`(5(2000-x))/(100)`

Total Interest Earned= Interest earned by Account A+ Interest earned by Account B

Total Interest Earned=
`(3x)/(100)`+
`(5(2000-x))/(100)`

75=
`(3x)/(100)`+
`(10000-5x))/(100)`

75=
`(3x+10000-5x))/(100)`

Multiply by 100 on both sides

75*100=
`(100(10000-2x)))/(100)`

7500=10000-2x

Let us subtract 7500 from both sides

7500-7500=10000-7500-2x

0=2500-2x

Adding 2x on both sides, we get

0+2x=2500-2x+2x

2x=2500

To solve for x, divide by 2 on both sides

2x/2=2500/2

x=1250

So, The Amount invested in Account A= $1250

The Amount invested in Account B= $2000-1250=$750