Question

Mr. Wilson invested money in two accounts. His total investment was $18,000. If one account pays 5% in interest and the other pays 10% in interest, how much did he invest in each account if he earned a total of $1,250 in interest in 1 year?

Answer 1

he Invested $11,000 in the 5% interest account and $ 7,000 in the 10% interest account.

Explanation:

Let x and y represent the amount he Invested in the two accounts (5% and 10% respectively)

Given that the total investment is $18,000

x + y = 18000 ......1

If he earned a total of $1,250 in interest in 1 year.

0.05(x) + 0.10(y) = 1250 .......2

Solving the simultaneous equation,

Divide equation 2 through by 0.05

x + 2y = 25000 ......3

Subtract equation 1 from 3

x-x + 2y-y = 25000-18000

y = 7000

From equation 1

x = 18000 - y = 18000 - 7000

x = 11000

Therefore, he Invested $11,000 in the 5% interest account and $ 7,000 in the 10% interest account.