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5 November, 22:59

You invest $7200 in two accounts paying 6% and 9% annual interest. at the end of the year, the accounts earn the same interest

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Answers (2)
  1. 5 November, 23:06
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    Let the final interest = X

    If Simple interest is given A=PiN, where A is the final interest, P is the principal, i is the rate of interest and N is the number of terms (years)

    ∴The first account will be X = H x 0.06 x 1, where H is the principal for that account

    And the second account will be X = G x 0.09 x 1, where G is the principal for that account

    You can substitute the X value of the first equation (X = P x 0.06 x 1) into the second equation to make:

    H x 0.06 = G x 0.09

    ∴G = 2/3 x H

    ∴G/H = 2/3 (makes a ratio of five parts)

    Divide 7200 into five parts = $1440 per part

    Hence, G = 2 x 1440 = $2880, and H = 3 x 1440 = $4320
  2. 5 November, 23:21
    0
    0.06x=0.09 (7200-x)

    0.06x=648-0.09x

    0.09x+0.06x=648

    0.15x=648

    X=648/0.15=4,320 at 6%

    7200-4320=2,880 at 9%
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