Question

Bax invested a total of $2000 in two simple interest accounts. Account A earns 3% interest and Account B earns 5% interest. Bax earned a total of $75 interest after one year. How much did Bax invest in each account?

Answer 1

Bax invested a total of $2000 in two simple interest accounts. Account A earns 3% interest and Account B earns 5% interest. Bax earned a total of $75 interest after one year. How much did Bax invest in each account?

Let, The amount invested in Account A=x

Then, the amount invested in Account B=2000-x

The formula of Simple Interest =$\frac{Principle*Rate*Time}{100}$

Interest earned in Account A in 1 year=$\frac{x*3*1}{100}$

Interest earned by Account A=$\frac{3x}{100}$

Interest earned in Account B in 1 year=$\frac{(2000-x)*5*1}{100}$

Interest earned by Account B=$\frac{5(2000-x)}{100}$

Total Interest Earned= Interest earned by Account A+ Interest earned by Account B

Total Interest Earned=$\frac{3x}{100}$+$\frac{5(2000-x)}{100}$

75=$\frac{3x}{100}$+$\frac{10000-5x)}{100}$

75=$\frac{3x+10000-5x)}{100}$

Multiply by 100 on both sides

75*100=$\frac{100(10000-2x))}{100}$

7500=10000-2x

Let us subtract 7500 from both sides

7500-7500=10000-7500-2x

0=2500-2x

Adding 2x on both sides, we get

0+2x=2500-2x+2x

2x=2500

To solve for x, divide by 2 on both sides

2x/2=2500/2

x=1250

So, The Amount invested in Account A= $1250

The Amount invested in Account B= $2000-1250=$750