Problema Solution
A total of $6200 is deposited into two simple interest accounts. On one account the annual simple interest rate is 5%, and on the second account the annual simple interest rate is 7%. The amount of interest earned for 1 year was $334. How much was invested in each account?
Answer provided by our tutors
let 'x' represent the amount invested at 5%, then '6200-x' represents the amount invested at 7%
interest = principal * rate * time
we have time equal to 1 year
334 = 0.05x + 0.07(6200-x)
solving for 'x' we have x=5000
6200-5000 = 1200
$5,000 was invested at 5%, $1,200 was invested at 7%