Question

Jolene invests her savings in two bank accounts, one paying 4 percent and the other paying 10 percent simple interest per year. She puts twice as much in the lower-yielding account because it is less risky. Her annual interest is 3996 dollars. How much did she invest at each rate?

Answer 1

Answer:

$ 22200 in higher yielding bank and $ 44400 in lower yielding bank

Step-by-step explanation:

       Jolene invests in two bank accounts. The first account gives a 4% interest per year and the second bank gives a 10% interest rate per year.

       She puts twice as much in the lower yielding bank account. Let us denote the amount put in high yielding bank account by $x$. Lower yielding bank account will have $2x$.

       $Interest\text{ }per\text{ }year=Principal\times Interest\text{ }rate$

Interest from lower yielding bank = $\dfrac{4}{100} \times 2x=\dfrac{8x}{100}$

Interest from higher yielding bank = $\dfrac{10}{100} \times x=\dfrac{10x}{100}$

Total Interest per year = $ 3996 = $\dfrac{8x}{100} +\dfrac{10x}{100}=\dfrac{18x}{100}$

$x=22200$

∴ Jolene invested $ 22200 in higher yielding bank and $ 44400 in lower yielding bank.