A stock analyst deposited a total of $50,000 in two simple interest accounts. The annual simple interest rate on one account is 4%. The annual simple interest rate on the second account is 9%. How much was invested in each account if the total annual interest earned is 6% of the total investment?

Question

Mathematics

Justine Lester

14 July, 22:41

A stock analyst deposited a total of $50,000 in two simple interest accounts. The annual simple interest rate on one account is 4%. The annual simple interest rate on the second account is 9%. How much was invested in each account if the total annual interest earned is 6% of the total investment?

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Answers (1)

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Yasmin Golden · Answer 1

Let

x = amount invested at 9% interest, and

50000-x = amount invested at 4% interest

Then

0.09x+0.04 (50000-x) = 0.06*50000

Solve for x

0.05x=3000-2000

x=20000

The analyst invested $20000 at 9% and $30000 at 4%.