Problema Solution
how can $70,000 be invested,part at 4% annual simple interest and the remainder at 10% annual simple interest,so that the interest earned by the two accounts is equal at the end of the year.
Answer provided by our tutors
Let's call the amount invested in the 4% account "X". The amount invested in the 10% account is therefore 70,000-X.
At the end of the year, the money in the 4% account has earned interest X*4/100.
The money in the 10% account has earned interest (70,000-X)*10/100.
Equate these two amounts of interest and solve for X:
4X=700,000-10X
therefore
14X=700,000
therefore
X=700,000/14=$50,000.