Question

Last year, Leila had $30,000 to invest. She invested some of it in an account that paid 6% simple interest per year, and she invested the rest in an account that paid 5% simple interest per year. After one year, she received a total of $1580 in interest. How much did she invest in each account?

Answer 1

• 6%: $8,000
• 5%: $22,000

Explanation:

Let x represent the amount invested at 6%. Then 30000-x is the amount invested at 5%. Leila's total earnings for the year are ...

0.06x +0.05(30000-x) = 1580

0.01x +1500 = 1580 . . . . . . . . . . . . simplify

0.01x = 80 . . . . . . . . . . . subtract 1500

x = 8000 . . . . . . . . . . . . multiply by 100

Leila invested $8000 at 6% and $22000 at 5%.