Answer: Total amount invested in both accounts is $1875
Step-by-step explanation:
Let x represent the amount invested at 11%.
Let y represent the amount invested at 5%.
She invests four times as much in an account paying 11% as she does in an account paying 5%. This means that
x = 4y
The formula for determining simple interest is expressed as
I = PRT/100
Where
P represents the principal
R represents the rate of investment
T represents the time in years.
Considering the amount invested at 11%,
I = (x × 11 × 1)/100 = 0.11x
Considering the amount invested at 5%,
I = (y × 5 × 1)/100 = 0.05y
If she earns $183.75 in interest in one year from both accounts combined, it means that
0.11x + 0.05y = 183.75 - - - - - - - - - -1
Substituting x = 4y into equation 1, it becomes
0.11 × 4y + 0.05y = 183.75
0.44y + 0.05y = 183.75
0.49y = 183.75
y = 183.75/0.49
y = 375
x = 4y = 375 × 4
x = 1500
Total amount invested in both accounts is
1500 + 375 = $1875
