Question

Sal Boxer decided to divide a gift of $7000 into two different accounts. He placed $1000 in an account that earns an annual simple interest rate of 7.5%. The remaining money was placed in an account that earns an annual simple interest rate of 7.75%. How much interest will Sal earn from the two accounts after one year?

Answer 1

Total yearly interest for the two accounts is: $570

Explanation:

0.075*1000+0.0825*6000=570

75.0+495.0=570