Question

James invests $5400 in two different accounts. The first account paid 14 %, the second account paid 6 % in interest. At the end of the first year he had earned $580 in interest. How much was in each account?

Answer 1

Given:

Total invested amount = $5400

Rate of interest for first account = 14%

Rate of interest for second account = 6%

Total interest after one year = $580

To find:

The amount invested in each account.

Solution:

Let the amount invested in the first account be $x, then the amount invested in the second account is $(5400-x).

Total interest = 14% of $x + 6% of $(5400-x).

$580=\dfrac{14}{100}x+\dfrac{6}{100}(5400-x)$

Multiply both sides by 100.

$58000=14x+6(5400-x)$

$58000=14x+32400-6x$

$58000-32400=8x$

$25600=8x$

Divide both sides by 8.

$\dfrac{25600}{8}=x$

$3200=x$

Now,

$5400-x=5400-3200$

$5400-x=2200$

Therefore, the amount invested in first account is $3200 and the amount invested in the second account is $2200.