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12 August, 18:30

A man invests $17,000 in two accounts. one account earns 5% interest per year, and the other earns 6.5%. If the total interest after one year is $970, how much did he invest at each rate?

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  1. 12 August, 20:05
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    Let x = the amount invested a 5% and 17,000 - x = the amount invested at 6.5%. Now you can write the equation:

    0.05x + [0.065 (17,000 - x) ] = 970

    Solve for x to get the amount invested at 5% and 17,000 - x will = the amount invested at 6.5%

    x = 9,000

    17,000 - 9,000 = 8,000
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