Question

Rhonda decided to invest 15,000 of her retirement fund conservatively . She invested part of this money into one account that pays 4% simple interest and part into another account that pays 2% simple interest . Last year she earned 360$ in intrest . How much did she invest in each type of account ?

Answer 1

Kindly check explanation

Explanation:

Given the following :

Total Planned amount to invest = 15,000

Investment A:

Rate = 4% = 0.04

Principal = a

Investment B:

Rate = 2% = 0.02

Principal = b

Total interest earned = $360

Simple interest = principal * rate * time

Simple interest on A + simple interest on B = $360

a + b = 15,000 - - - (1)

(a * 0.04) + (b * 0.02) = 360

0.04a + 0.02b = 360 - - - (2)

a = 15000 - b

0.04(15000 - b) + 0.02b = 360

600 - 0.04b + 0.02b = 360

-0.02b = 360 - 600

-0.02b = - 240

b = 240 / 0.02

b = $12000

a = 15000 - b

a = 15000 - 12000

a = $3000