Question

When equal amounts are invested in each of three accounts paying 7%, 9%, and 12.5%, one years combined interest income is $1,225.5. How much is invested in each account?

Answer 1

$4300.

Explanation:

Let x represent amount of money invested in each account.

We have been given that equal amounts are invested in each of three accounts paying 7%, 9%, and 12.5%, one years combined interest income is $1,225.5.

We will use simple interest formula to solve our given problem.

`I=Prt`, where,

I = Amount of interest after t years,

P = Principal amount,

r = Annual interest rate.

Since principal for each amount is equal and time is equal to 1 year, so we can represent our given information in an equation as:

`1225.5=x(0.07+0.09+0.125)(1)`

`1225.5=x(0.285)`

`x=(1225.5)/(0.285)`

`x=4300`

Therefore, an amount of $4300 is invested in each account.