Question

Sal Boxer decided to divide a gift of $5000 into two different accounts. He placed $1000 in an account that earns an annual simple interest rate of 7.5%. The remaining money was placed in an account that earns an annual simple interest rate of 7.75%. How much interest will Sal earn from the two accounts after one year?

Answer 1

Answer:

THE TOTAL INTEREST EARNED = $ 385

Step-by-step explanation:

Interest earned by sal from first account can be calculated as follows :

Principal value (P)  =  $1000 .

interest rate (R)  =  7.5 % .

Time period (T) =  1  year .

$\textbf{S . I} =\frac{\texbf{P * R * T}}{\textbf{100}}$

        $= \frac{1000 * 7.5 * 1}{100}$

         = $ 75 .

SIMILARLY , we can find the intrest earned by rest amount.

Principal value (P) = $5000 - $ 1000 = $ 4000 .

Interest rate (R) = 7.75 % .

Time period (T) = 1 year .

$S . I = \frac{4000 * 7.75 * 1}{100}$

      = $ 310 .

THE TOTAL INTEREST EARNED = $ 75 + $ 310

                                                       = $ 385