Question

Micah deposited $4000 between two savings account. One account earns 4% simple interest each year. The other account earns 2% simple interest. Last year Micah earned $140 interest on the accounts.

What amount was originally deposited into the account that pays 4% interest?

Answer 1

$3000 * 0.04 = $120
$100 * 0.02 = $20

total 2 accounts = $120 + $20 = $140

answer: $3000 was the originally deposited into the account that pays 4% interest.

Answer 2

The amount that is deposited at 4 % simple interest is $ 3000.

Explanation:

Given, the total amount deposited = $ 4000,

Let x be the amount that is deposited at the rate of 4 % simple interest,

⇒ The amount deposited at the rate of 2% simple interest = ( 4000 - x ) dollars,

We know that,

The simple interest on an amount is,

`I=(P* r* t)/(100)`

Where, P is the principal amount, r is rate of interest and t is time,

Thus, the total interest he earned in a year

`I=(x* 4* 1)/(100)+((4000-x)* 2* 1)/(100)`

`=(4x)/(100)+(2(4000-x))/(100)`

`=(4x+2(4000-x))/(100)`

According to the question,

I = $ 140,

`\implies (4x+2(4000-x))/(100)=140`

`(2x+8000)/(100)=140`

`2x+8000=14000`

`2x=6000`

`x=3000`

Hence, the amount that is deposited at 4 % simple interest is $ 3000.