Problema Solution

An investor will invest a total of 15,000 in two accounts, one paying 4% annual simple interest and the other paying 3%. If he wants to earn $550 annual interest, how much should he invest at each rate.

Answer provided by our tutors

Let money deposited in 1st acc be x

so

x * 0.04 + (15000-x)*0.03 = 550

4x + 45000 - 3x = 55000

x = 10000

Money deposited in 1st account = $10000

Money deposited in 2nd account = $5000