Question

3. A $5,000 principal is invested in two accounts, one earning 1% interest and another earning 6%

interest. If the total interest for the year is $170, then how much is invested in each account?

Answer 1

Let, amount invested in first account is x.

So, amount invested in second account is ( 5000 - x ).

Now,

Total interest = Interest from 1 + Interest from 2

170 = x × 0.01 × 1 + ( 5000 - x ) × 0.06 × 1

17000 = x + 6( 5000 - x )

17000 = x + 30000 - 6x

5x = 30000 - 17000

x = $2600

Therefore, money invested in first and second account is $2600 and $2400.

Hence, this is the required solution.