Question

Mr. Weaver invested part of his $6000 inheritance in an account that earns 4%

simple interest and the other part in an account that earns 7% simple interest.
How much did he invest in each account if the two accounts earned $360 after
the first year?

Answer 1

Mr. Weaver invested $ 2,000 in the 4% simple interest account and $ 4,000 in the 7% simple interest account.

Explanation:

1. Let's review the information given to us to answer the question correctly:

Amount of the inheritance = $ 6,000

Interest rate of the first part = 4% simple

Interest rate of the second part = 7% simple

Interest of the accounts after the first year = $ 360

2. How much did he invest in each account?

For answering the question, we will use the following equation:

x = Amount invested in the first account

6,000 - x = Amount invested in the second account

0.04x + 0.07 * (6,000 - x) = 360

0.04x + 420 - 0.07x = 360

-0.03x = 360 - 420 (Subtracting 420 at both sides)

-0.03x = -60

x = -60/-0.03

x = 2,000 ⇒ 6,000 - x = 4,000

Mr. Weaver invested $ 2,000 in the 4% simple interest account and $ 4,000 in the 7% simple interest account.