Question

8. Mr. Azu invested an amount at rate of 12% per annum and invested another amount, GH¢

580.00 more than the first at 14%. If Mr. Azu had total accumulated amount of
GH¢2,358.60, how much was his total investment?

Answer 1

GH¢. 18098.46

Explanation:

Let the first investment giving 12% interest per annum be Bank A

Let the 2nd investment giving 10% per annum be bank B

Let the first amount invested be

GH¢. X and let the second amount invested be GH¢. X + 580

Thus; In bank A;

Principal amount in first = GH¢. x

rate = 12 %

time = 1 year

Formula for simple interest = PRT/100

Where P is principal, R is rate and T is time.

So, interest in his investment = 12X/100 = 0.12X

while in bank B;

principal amount = GH¢. X + 580

rate = 14%

time = 1 yr

So, interest in his investment = [(X + 580) × 14]/100

= 0.14(X + 580)

So, total accumulated interest is;

0.12X + 0.14(X + 580) = 0.12X + 0.14X + 81.2 = 0.26X + 81.2

Now, we are given accumulated interest = GH¢. 2,358.60

Thus;

2358.60 = (0.26X + 81.2)

2358.6 - 81.2 = 0.26X

X = 2277.4/0.26

X = 8759.23

So,

first amount invested = GH¢. 8759.23

Second amount invested = GH¢. 8759.23 + GH¢. 580 = GH¢. 9339.23

Total amount invested = GH¢. 8759.23 + GH¢. 9339.23 = GH¢. 18098.46