Answer: he invested $6000 in the account earning 5% interest and $2100 in the other account earning 2% interest
Step-by-step explanation:
Let x represent the amount invested in the account earning 5% interest.
Let y represent the amount invested in the account earning 2% interest.
In an account earning 5% interest, George invested $1800 more than twice the amount he invested in an account earning 2%. It means that
x = 2y + 1800
The formula for simple interest is expressed as
I = PRT/100
Where
P represents the principal
R represents interest rate
T represents time in years
I = interest after t years
Assuming the duration for both investments is 1 year,
The interest on the first account would be
I = (x × 5 × 1)/100 = 0.05x
The interest on the second account would be
I = (y × 2 × 1)/100 = 0.02y
George earned a total of $342 in simple interest from two separate accounts. This means that
0.05x + 0.02y = 342 - - - - - - - - - - 1
Substituting x = 2y + 1800 into equation 1, it becomes
0.05(2y + 1800) + 0.02y = 342
0.1y + 90 + 0.02y = 342
0.1y + 0.02y = 342 - 90
0.12y = 252
y = 252/0.12 = 2100
x = 2y + 1800 = 2 × 2100 + 1800 = $6000
