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 8.5%. The remaining money was placed in an account that earns an annual simple interest rate of 9.25%. How much interest will Sal earn from the two accounts after one year?

Answer 1

He will earn $455 of interest in one year

because 1000 x 8.5% = 85

and 4000 x 9.25% = 370

85 + 370 = 455