Problema Solution
Brian has money in two savings accounts. One rate is 8% and the other is 12%. If he has $150 more in the 12% account and the total interest is $106, how much is invested in each savings account?
Answer provided by our tutors
Let 'x' represent the amount of interest earned at 8%, then let '106-x' represent the interest earned at 12%.
8% is given as a decimal 0.08
12% is given as a decimal 0.12
Let 'P' represent the principal amount invested at 8%, then let 'P+150' represent the principal amount invested at 12%.
simple interest can be calculated by P*R*T, where 'P' is principal, 'R' is rate and 'T' is time, which we assume to be annual interest
x=P*0.08
(106-x)=(P+150)0.12
click here to solve the system
P=440
x=35.2
106-35.2=70.8
440+150=590
So $590 was invested at 12% and earned $70.80 and $440 was invested at 8% and earned $35.20.