Problema Solution
Scott invested a total of $9500 at two separate banks. One bank pays simple interest of 12% per year while the other pays simple interest at a rate of 9% per year. If Scott earned $1032.00 in interest during a single year, how much did he have on deposit in each bank?
Answer provided by our tutors
Let 'x' represent the amount invested at 12%, then the rest of the amount '9500-x' is the amount invested at 9% per year.
Since,
Interest = Principal * Rate * Time
Time = 1 year
we can write:
1032 = 0.12x + 0.09(9500-x)
Solving for x we find x=$5,900
9,500 - 5,900 = 3,600
Scott invested $5,900 at 12% and $3,600 at 9%.