Answer: He invested $1200 in bank A and $800 in bank B.
Step-by-step explanation:
Let x represent the amount deposited in bank A.
Let y represent the amount deposited in bank B
Michael Perez deposited a total of $2000 with two savings institutions. This means that
x + y = 2000
The formula for determining simple interest is expressed as
I = PRT/100
Where
I represents interest paid on the loan.
P represents the principal or amount taken as loan
R represents interest rate
T represents the duration of the loan in years.
Considering the amount invested in bank A,
P = x
R = 6%
T = 1 year
I = (x × 6 × 1)/100 = 0.06x
Considering the amount invested in bank B,
P = y
R = 8%
T = 1 year
I = (y × 8 × 1)/100 = 0.08y
If Michael earned a total of $136 in interest during a single year, it means that
0.06x + 0.08y = 136 - - - - - - - - - - -1
Substituting x = 2000 - y into equation 1, it becomes
0.06(2000 - y) + 0.08y = 136
120 - 0.06y + 0.08y = 136
- 0.06y + 0.08y = 136 - 120
0.02y = 16
y = 16/0.02 = 800
x = 2000 - y = 2000 - 800
x = 1200
