Problema Solution
Scott invested a total of $5400 at two separate banks. one bank pays simple interest of 12% per year while the other pays simple interest at a rate of 6% per year. If scot earned $504.00 in interest during a single year, how much did he have on deposit in each bank?
Bank that paid 12%?
Bank that paid 6%?
Answer provided by our tutors
let 'x' represent the amount invested at 12%, then '5400-x' represents the amount invested at 6%
interest = principal * rate * time
time = 1 year
504 = 0.12x + 0.06(5400-x)
solving for 'x' we have x=3000
5400-3000 = 2400
Scott invested $3,000 at 12% and $2,400 at 6%