Question

You invested a total of $30,000 at 3% and 4 1 2 % simple interest. During one year, the two accounts earned $1200. How much did you invest in each account?

Answer 1

$20,000 at 4.5% simple interest

$10,000 at 3% simple interest

Explanation:

`.045x + .03(30000 - x) = 1200`

`.045x + 900 - .03x = 1200`

`.015x + 900 = 1200`

`.015x = 300`

`x = 20000`

$20,000 at 4.5% simple interest

$30,000-$20,000=$10,000 at 3% simple interest