Question

Dilbert invests a total of $26,000 in two accounts paying 14% and 2% annual interest, respectively. How much was invested in each account if, after one year, the total interest was $2,560.00

Answer 1

$17,000 at 14% and $9,000 at 2%

Explanation:

Let x = amount invested at 14%.

Let y = amount invested at 2%.

x + y = 26000

0.14x + 0.02y = 2560

-0.02x - 0.02y = -520

(+) 0.14x + 0.02y = 2560

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0.12x = 2040

x = 17,000

x + y = 26000

17000 + y = 26000

y = 9000

Answer: $17,000 at 14% and $9,000 at 2%