Question

Bill invests in a plan that has an interest rate of 2%. He invests five times as much in a plan that has an interest rate of 6%. If the total interest from the investments is $928 after one year, how much was invested in each plan?

a) $164 in the 2% plan and $820 in the 6% plan
b) $820 in the 2% plan and $164 in the 6% plan
c) $656 in the 2% plan and $3280 in the 6% plan
d) $3280 in the 2% plan and $656 in the 6% plan

Answer 1

Bill invested $2900 in the 2% plan and $14500 in the 6% plan.

Step-by-step explanation:

Let's assume that Bill invested $x in the 2% plan and $5x in the 6% plan.

The total interest earned from the 2% plan is given by: 0.02 * x = 0.02x

The total interest earned from the 6% plan is given by: 0.06 * 5x = 0.3x

According to the problem, the total interest earned from both plans is $928, so we can set up the equation: 0.02x + 0.3x = 928

Combining like terms, we get: 0.32x = 928

Dividing both sides by 0.32, we get: x = 2900

Therefore, Bill invested $2900 in the 2% plan and $5 * $2900 = $14500 in the 6% plan.