Question

Please help, thank you!

A corporation gave a university $320,000 to support product safety research. The university deposited some of the money in a 10% simple interest account and the remainder in an 11.3% simple interest account. How much should be deposited in each account so that the annual interest earned is $42,200?

Answer 1

The formula for calculating simple interest is

I = PRT

I = Interest

P = Principal or the amount deposited ($600)

R = Rate of Interest (1.5%)

T = Time (6 yrs)

I = (600) (1.50) (6)

Multiply the 3 factors and you will have your answer.

good luck