Jolene invests her savings in two bank accounts, one paying 4 percent and the other paying 8 percent simple interest per year. She puts twice as much in the lower-yielding account because it is less risky. Her annual interest is 3664 dollars. How much did she invest at each rate?

Question

Cael Harvey

Mathematics

11 December, 23:26

Jolene invests her savings in two bank accounts, one paying 4 percent and the other paying 8 percent simple interest per year. She puts twice as much in the lower-yielding account because it is less risky. Her annual interest is 3664 dollars. How much did she invest at each rate?

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Answers (1)

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Madeleine Mcclain · Answer 1

The average rate is (4%*2+8%) / 3=16/3%=5-1/3%

Therefore the original investment was

3664 / (16/300) = 300*3664/16=68700,

of which 1/3 was at 8% = 22,900

and 2/3 was at 4% = 45,800

Check:45,800*.04+22,900*.08=3664 yay!