Question

Samantha invests a total of $19,500 in two accounts paying 11% and 6% annual interest, respectively. How much was invested in each account if, after one year, the total interest was $1,395.00.

Answer 1

Samantha invested $4,500 in the 11% account

Samantha invested $15,000 in the 6% account.

Explanation:

Let's denote the amount invested in the 11% account as "x" dollars and the amount invested in the 6% account as "19500 - x" dollars (since the total investment is $19,500).

The formula to calculate the interest earned is given by:

Interest = Principal × Rate × Time

For the 11% account:

Interest from the 11% account = x × 0.11 × 1 (since the time is 1 year)

For the 6% account:

Interest from the 6% account = (19500 - x) × 0.06 × 1 (again, the time is 1 year)

According to the information given, the total interest is $1,395. So, we can write the equation:

Interest from the 11% account + Interest from the 6% account = 1395

x × 0.11 + (19500 - x) × 0.06 = 1395

Now let's solve for x:

0.11x + 0.06(19500 - x) = 1395

0.11x + 1170 - 0.06x = 1395

0.05x = 1395 - 1170

0.05x = 225

x = 225 / 0.05

x = 4500

So, Samantha invested $4,500 in the 11% account and $19,500 - $4,500 = $15,000 in the 6% account.