Question

You invested ​$29 comma 000 in two accounts paying 2 % and 5 % annual​ interest, respectively. If the total interest earned for the year was $ 940 comma how much was invested at each​ rate?

Answer 1

Amount invested in account paying 2% = $17,000

Amount invested in account paying 5% = $12,000

Step-by-step explanation:

Total amount invested = $29,000

Total Interest earned = $940

Let the amount invested in account paying 2% interest be 'x'

Therefore,

the amount invested in account paying 5% interest will be '$29,000 - x'

Now,

( 2% of x ) + [ 5% of ( $29,000 - x)] = $940

or

0.02x + 1450 - 0.05x = $940

or

- 0.03x = $940 - $1450

or

- 0.03x = - $510

or

x = $17,000

Hence,

Amount invested in account paying 2% = $17,000

Amount invested in account paying 5% = $29,000 - $17,000 = $12,000