Question

(1 point) A man invests his savings in two accounts, one paying 6% and the other paying 10% simple interest per year. He puts twice as much in the lower-yielding account because it is less risky. His annual interest is $2794 dollars. How much did he invest at each rate? Your answer is:

Answer 1

Answer:

Investment on 10% interest rate = $12,700

Investment on 6% interest rate = $25,400

Explanation:

Annual Interest = $2,794

As given in the question

We suppose that

Investment on 6% interest rate = 2x

Investment on 10% interest rate = x

According to given condition:

(2x*6%)+(x*10%) = $2,794

0.12x +0.1x = $2,794

0.22x = $2,794

x =  $2,794/0.22

x = $12,700

Investment on 10% interest rate = x = $12,700

Investment on 6% interest rate = 2x = 2*12,700 = $25,400