Given:
Total principal = $5400
Interest rate of bank A = 10% = 0.10
Interest rate of bank B = 8% = 0.08
Total interest = $492
Let's find how much he deposited in each bank.
Equation for total principal:
A + B = 5400
Equation for total interest:
0.10A + 0.08B = 492
Hence, we have the system of equations:
A + B = 5400
0.10A + 0.08B = 492
Where A and B represents the amount deposited in each bank.
Let's solve the system simultaneously using substitution method:.
Rewrite the first equation for A:
A = 5400 - B
Substitute (5400 - B) for A in equation 2:
Divide both sides by -0.02:
Now, substitute 2400 for B in either of the equations:
Therefore, we have the following:
Amount deposited in the bank that pays 10% interest = $3000
Amount deposited in the bank that pays 8% interest = $2400
• ANSWER:
Amount deposited in the bank that pays 10% interest = $3000
Amount deposited in the bank that pays 8% interest = $2400