Answer:
He invested 14,000 in one account and $6,000 in another.
Explanation:
Let amount invested in one account paying 8% simple interest be x.
Total amount invested = $20,000
Amount invested in another account paying 7% simple interest = 20,000 - x
Total interest = $1,540
Simple interest equation for 1st account = 0.08x
Simple interest equation for 1st account = 0.07 (20,000 - x)
Sum of these two equations is $1,540
Equating above two equations we get,
1,540 = 0.08x + 0.07(20,000 - x)
1,540 = 0.01x + 1,400
x = $14,000
$14,000 is invested in one account and $6,000 (20,000 - 14,000) is invested in another.
