Question

Matt invests $9400 in two different accounts. The first account paid 7 %, the second account paid 10% in interest. At the end of the first year he had earned 823 in interest. How much was in eachaccount?

Answer 1

let the amounts in the accounts be a and 9400 - a

using i = prt/100 where i is the interest earned

p is the principal, r is the rate and t is the time in year

Hence given that the total interest earned is 823

823 = (a * 7 * 1 + (9400 -a) * 10 *1)/100

82300 = 7a + 94000 -10a

10a - 7a = 94000 - 82300

3a = 11700

a = 11700/3

a = $3900

The amount invested in the second account is

9400 - 3900

= $5500

Hence there are $3900 and $5500 in the two accounts.