Question

You invested a total of $9000 at 4.5% and 5% simple interest. During one year, the two accounts earned $425.

How much did you invest in each account?

Answer 1

eg. the first loan is x, the second loan will be (9,000 - x)

First, we need to make an equation based on the problem

first interest + second interest = 492

5% of x + 6% of (9,000 - x) = 492

This is the equation

Second, solve the equation and find out the value of x (first loan)

0.05x + 0.06(9.000 - x) = 492

0.05x + 540 - 0.06x = 492

-0.01x + 540 = 492

-0.01x = 492 - 540

-0.01x = -48

x = -48/-0.01

x = 4,800

Third, find the second loan

9,000 - x

= 9,000 - 4,800

= 4,200

SUMMARY

The first loan that has interest of 5% is $4,800

The second loan that has interest of 6% is $4,200