Edgar is learning to make handmade corn tortillas from his grandmother in preparation for a family gathering. His
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Skippy should invest $ 7500 in account offering 4 % interest and $ 2500 in account offering 8 % simple interest
<em><u>Solution:</u></em>
Given that Skippy has a total of $10,000 to split between two investments
One account offers 4% simple interest, and the other account offers 8% simple interest
Total interest earned = 500
Number of years = 1
Let the principal with rate of interest 4 % is x
So the principal for rate of interest 8 % is 10000 - x
Total interest earned = simple interest for 4 % interest + simple interest for 8 % interest
Simple interest is given as:
Where "p" is the principal and "r" is the rate of interest and "n" is the number of years
Therefore,
Therefore skippy should invest $ 7500 in account offering 4 % interest
And skippy should invest (10000 - x) = (10000 - 7500) = $ 2500 in account offering 8 % interest