Problema Solution

Suppose you invest money in two accounts. One of the accounts pays 8% annual interest, whereas the other pays 9% interest. If you have $2,000 more invested at 9% than you have invested at 8%, how much do you have invested in each account if the total amount of interest you earn in a year is $860?

Answer provided by our tutors

let 'x' represent the amount invested at 8%, then 'x+2000' represents the amount invested at 9%


interest = principal * rate * time

we assume time to be equal to 1


860 = 0.08x + 0.09(x+2000)

solving for 'x' we have x=4000


4000+2000 = 6000


you have $4,000 invested at 8% and $6,000 invested at 9%