Question

Last year, Brian deposited $4000 into an account that paid 7% interest per year and $1000 into an account that paid 4% interest per year. No withdrawals

were made from the accounts.
Answer the questions below. Do not do any rounding.
(a) What was the total interest earned at the end of 1 year?
$
(b) What was the percent interest for the total deposited?

Answer 1

a: $320

b: 6.4%

Explanation:

(a) To calculate the total interest earned at the end of 1 year, we need to find the interest earned on each deposit and then add them together.

For the first deposit of $4000 at an interest rate of 7%, the interest earned can be calculated using the formula:

Interest = Principal x Rate

Interest = $4000 x 7% = $4000 x 0.07 = $280

For the second deposit of $1000 at an interest rate of 4%, the interest earned can be calculated using the same formula:

Interest = Principal x Rate

Interest = $1000 x 4% = $1000 x 0.04 = $40

Therefore, the total interest earned at the end of 1 year is $280 + $40 = $320.

(b) To find the percent interest for the total deposited, we need to divide the total interest earned by the total amount deposited and then multiply by 100.

Total amount deposited = $4000 + $1000 = $5000

Percent interest = (Total interest earned / Total amount deposited) x 100

Percent interest = ($320 / $5000) x 100

Percent interest = 0.064 x 100

Percent interest = 6.4%

So, the percent interest for the total deposited is 6.4%.