Question

Last year, Charmaine deposited S1000 into an account that paid 2% interest per year and $3000 into an account that paid 7% interest per year. No withdrawals

were made from the accounts. what was the total interest earned at the end of year one? What was the percent interest for the total deposited?

Answer 1

total interest earned = $230

percent interest for the total deposited = 5.75%

Explanation:

Account 1 : deposited = $1,000 with interest 2%/year

Account 2 : deposited = $3,000 with interest 7%/year

Interest account 1 = 2% x $1,000 = $20

Interest account 2 = 7% x $3,000 = $210

Total interest earned = 20 + 210 = $230

Total interest earned = Percent interest x Total deposited

230 = Percent interest x (1,000+3,000)

230 = Percent interest x 4,000

230 : 4000 = Percent interest

Percent interest = 230 : 4000 = 0.0575 = 5.75%