Question

Last year, milan had to invest. He invested some of it in an account that paid simple interest per year, and he invested the rest in an account that paid simple interest per year. After one year, he received a total of in interest. How much did he invest in each account?

Answer 1

By my assumption

Let x = the amount Milan invested in an account that paid 10% interest

Let y = the amount Milan invested in an account that paid 5% interest

x + y = 20,000

x = 20,000 - y

.10x + .05y = 1400

Multiply both sides of this equation by 100 to get rid of the decimal points.

10x + 5y = 140,000

10(20,000-y) + 5y = 140,000

2,000,000 - 10y + 5y = 140,000

-5y = -60,000

y = $12,000

x = 20,000 - 12,000

x = $8000