Problema Solution
a total of 10,000 is deposited into two simple interest accounts. on one account, the simple interest rate is 4.5% on the second account the annual simple rate is 6% how much should be invested in each account so that annual interest earned is $504.
Answer provided by our tutors
The total to invest in the two accounts if $10,000:
x + y = 10,000
The total of the interest earned on both accounts is $504:
0.045 x + 0.06 y = 504
Combining these two equations we have:
0.045 x + 0.06 (y = 10,000 - x) = 504
0.045 x - 0.06 x + 600 = 504
0.015 x = -96
x = 6,400, y = 3,600
$6,400 should be deposited into the 4.5% account, and $3,600 into the 6% account in order to earn $504 annual interest on $10,000.