Question

** PLEASE HELP ** Jose invests money in two simple interest accounts. He invests four times as much in an account paying 12% as he does in an account paying 6%. If he earns $216.00 in interest in one year from both accounts combined, how much did he invest altogether?

Answer 1

Answer: $2,000

Explanation:

Jose has invested 80% 4/5 of his money in an account which pays 12% while 12% in an account which pays 6%, so his weighted average interest rate is (80%*12%)+(20%*.6)= 10.8% or 0.108, now to get the investment amount divide interest income by weighted average interest rate =(216/0.108)

Answer 2

Explanation:

Let x represent the amount which he invested in the account paying 12% interest.

Let y represent the amount which he invested in the account paying 6% interest.

He invests four times as much in an account paying 12% as he does in an account paying 6%. This means that

x = 4y

The formula for determining simple interest is expressed as

I = PRT/100

Considering the account paying 12% interest,

P = $x

T = 1 year

R = 12℅

I = (x × 12 × 1)/100 = 0.12x

Considering the account paying 6% interest,

P = $y

T = 1 year

R = 6℅

I = (y × 6 × 1)/100 = 0.06y

If he earns $216.00 in interest in one year from both accounts combined, it means that

0.12x + 0.06y = 216 - - - - - - - - - -1

Substituting x = 4y into equation 1, it becomes

0.12(4y) + 0.06y = 216

0.48y + 0.06y = 216

0.54y = 216

y = 216/0.54 = 400

x = 4y = 4 × 400

x = 1600

The total amount invested is

400 + 1600 = $2000