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Scott invested a total of $5400 at two separate banks. One bank pays simple interest of 12% per year while the other pays simple interest at a rate of 8% per year. If Scott earned $552.00 in interest during a single year, how much did he have on deposit in each bank?

User Mohammed Asad
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1 Answer

20 votes
20 votes

Answer:

Scott invested $ 3,000 at 12% annually, and $ 2,400 at 8% annually.

Explanation:

Since Scott invested a total of $ 5400 at two separate banks, and one bank pays simple interest of 12% per year while the other pays simple interest at a rate of 8% per year, if Scott earned $ 552.00 in interest during a single year, to determine how much did he deposit in each bank, the following calculation must be performed:

5400 x 0.12 + 0 x 0.08 = 648

4400 x 0.12 + 1000 x 0.08 = 608

3000 x 0.12 + 2400 x 0.08 = 552

Therefore, Scott invested $ 3,000 at 12% annually, and $ 2,400 at 8% annually.

User Avenmore
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