David deposited $12,000 into two saving accounts bearing simple interest. One of the accounts has an interest rate of 7% while the other rate is 6%. If the total interest earned after one year is $800, find the amount deposited into each of the accounts.

Question

Marques Gilmore

Mathematics

19 July, 19:52

David deposited $12,000 into two saving accounts bearing simple interest. One of the accounts has an interest rate of 7% while the other rate is 6%. If the total interest earned after one year is $800, find the amount deposited into each of the accounts.

+1

Answers (1)

Know the Answer?

Landry · Answer 1

In this item, we let x be the amount that is deposited in the account that has a simple interest equal to 7%. With this representation, the amount that is deposited in the account with simple interest of 6% is equal to 12000 - x.

The amount of interest earned from the investment is calculated through the equation,

I = P x (i)

For the first investment,

I = (x) (0.07)

For the second investment,

I = (12000 - x) (0.06)

Adding up the interests,

800 = 0.07x + (0.06) (12000 - x)

The value of x from the equation is 8000.

Therefore, the amount invested to that with 7% interest is $8000 and the amount invested to that with 6% interest is $4,000.