Question

A man invests a certain amount of money at 2% interest and $800 more than that amount in another account at 4% interest. At the end of one year, he earned $112 in interest. How much money was invested in each account? Which of the following equations could be used to solve the problem?

Answer 1

Answer:

$2400 in the 2% account and $1600 in the 4% account

Step-by-step explanation:

Find the amount of interest earned for the $800:

Interest = 2% of $800

Interest = 0.02 x 800 = $16

Find the interest earned by the rest of the 2 equal amount:

Interest = 112 - 16 = $96

Find the principal invested in the 4% account:

Total interest = 2 + 4 = 6%

6% = $96

1% = 96 ÷ 6 = $16

100% = 16 x 100 = $1600

Find the amount invested in the 2% account:

Amount = 1600 + 800 = $2400

Answer: $2400 in the 2% account and $1600 in the 4% account