Question

Ms. Walsh invested $18,000 in two accounts, one yielding 7% interest and the other yielding 11%. If she received a total of $1,420 in interest at the end of the year, how much did she invest in each account?

Answer 1

Explanation:

If she invested x dollars in account 1 , the investment in account 2 was 18000-x dollars.

Account 1 ( 7%) :

interest in 1 year in acct 1 = 0.07 * x = 0.07x dollars

Account 2:

interest in account 2 in a year 0.11(18000 - x) dollars

These 2 amounts add up to 1420 so we have:

0.07x + 0.11(18000 - x) = 1420

0,07x + 1980 - 0.11x = 1420

-0.04x = -560

x = -560 / -0.4

x = 14000

So she invested $14,000 in one account and $4,000 in the other.

The $14,000 was invested in the account yielding 7% interest.