Question

When equal amounts are invested in each of three accounts paying 7%, 9%, and 12.5%, one years combined interest income is $1,225.5. How much is invested in each account?

Answer 1

Answer:

$4300.

Step-by-step explanation:

Let x represent amount of money invested in each account.

We have been given that equal amounts are invested in each of three accounts paying 7%, 9%, and 12.5%, one years combined interest income is $1,225.5.        

We will use simple interest formula to solve our given problem.

$I=Prt$, where,

I = Amount of interest after t years,

P = Principal amount,

r = Annual interest rate.

Since principal for each amount is equal and time is equal to 1 year, so we can represent our given information in an equation as:

$1225.5=x(0.07+0.09+0.125)(1)$

$1225.5=x(0.285)$

$x=\frac{1225.5}{0.285}$

$x=4300$

Therefore, an amount of $4300 is invested in each account.