Question

When equal amounts are invested in each of three accounts paying 6%, 8%, and 11.5%, one year's combined interest income is $1,045.50. How much (in dollars) is invested in each account? a) $1,250, $750, $500

b) $800, $600, $650
c) $900, $850, $600
d) $1,000, $550, $495

Answer 1

To find the amount invested in each account, an equation was set up based on the interest rates and combined interest income. Solving this, it was determined that the amount invested in each account was $4,100.

Step-by-step explanation:

To solve this problem, we can set up an algebraic equation to find the amount invested in each account. Let's assume that the amount invested in each account is 'x'. We can then write the total interest received from the three accounts as the following:

The interest from the first account at 6% is 0.06x, from the second account at 8% is 0.08x, and from the third account at 11.5% is 0.115x. The total interest from all accounts is equal to $1,045.50.

Combining these, we get the equation:

0.06x + 0.08x + 0.115x = 1,045.50

Combining the terms on the left gives us:

0.255x = 1,045.50

Now, we divide both sides of the equation by 0.255 to find 'x':

x = 1,045.50 / 0.255

x = 4,100

Therefore, the amount invested in each account is $4,100.