Question

George earned a total of $342 in simple interest from two separate accounts. In an account earning 5% interest, George invested $1800 more than twice the amount he invested in an account earning 2%. How much did he invest in each account?

Answer 1

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