Tom invested 23,000 in two accounts, one yielding 4% interest and the other yielding 9%/ If he received a total of 1,320.00 in interest at the end of the year, how much did he invest in each year...

Tom invested 23,000 in two accounts, one yielding 4% interest and the other yielding 9%/ If he received a total of 1,320.00 in interest at the end of the year, how much did he invest in each year with 4%_______ and 9%_____?

Expert Answers
embizze eNotes educator| Certified Educator

The total investment of 23,000 was divided into two accounts paying 4% and 9% interest respectively. (Assuming simple yearly interest.)

The total interest is 1320.00

Let x be the amount invested at 4%, then 23000-x is invested at 9%. The total interest earned is the sum:

`.04x+.09(23000-x)=1320`

`.04x+2070-.09x=1320`

`.05x=750`

`x=15000`

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15,000 was invested at 4% and 8,000 was invested at 9%

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