Question

Last year, Manuel deposited $7000 into an account that paid 11% interest per year and $1000 into an account that paid 5% 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 year? (b) What was the percent interest for the total deposited?

Answer 1

The total interest earned at the end of the year was $ 820, and the interest generated by the total deposited was 10.25%.

Explanation:

Given that last year, Manuel deposited $ 7000 into an account that paid 11% interest per year and $ 1000 into an account that paid 5% interest per year, and no withdrawals were made from the accounts, to determine what was the total interest earned at the end of year and what was the percent interest for the total deposited, the following calculations must be performed:

7000 x 0.11 + 1000 x 0.05 = X

770 + 50 = X

820 = X

8000 = 100

820 = X

820 x 100/8000 = X

82,000 / 8,000 = X

10.25 = X

Therefore, the total interest earned at the end of the year was $ 820, and the interest generated by the total deposited was 10.25%.