Question

Mr. Wilson invested money in two accounts his total investment was $8000. If one account pays 6% and interest and the other pays 12% interest how much did he invest in each account if he earned a total of $600 in an interest in one year

Answer 1

Mr. Wilson invested $ 2,000 in the 12% simple interest account and $ 6,000 in the 6% simple interest account.

Explanation:

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

Amount of the investment = $ 8,000

Interest rate of the first account= 6% simple

Interest rate of the second account= 12% simple

Interest of the accounts in a year = $ 600

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

8,000 - x = Amount invested in the second account

0.06x + 0.12 * (8,000 - x) = 600

0.06x + 960 - 0.12x = 600

-0.06x = 600 - 960 (Subtracting 960 at both sides)

-0.06x = -360

x = -360/-0.06

x = 6,000 ⇒ 8,000 - x = 2,000

Mr. Wilson invested $ 2,000 in the 12% simple interest account and $ 6,000 in the 6% simple interest account.