Question

Last year, Josh had $20,000 to invest. He invested some of it in an account that paid 7% simple interest per year, and he invested the rest in an account that paid 9% simple interest per year. After one year, he received a total of $1560 in interest. How much did he invest in each account?

Answer 1

Answer: $12000 was invested at 7% while $8000 was invested at 9%.

Step-by-step explanation:

Based on the information given in the question, let the amount that was invested at 7% be n.

Therefore,

0.07n + 0.09(20000 - n) = 1560

0.07n + 1800 - 0.09n = 1560

-0.02n = 1560 - 1800

-0.02n = -240

n = 240/0.02

n = 120

Therefore, $12000 was invested at 7% while $8000 was invested at 9%.