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Last year, Milan had $10,000 to invest. He invested some of it in an account that paid 6% simple interests per year, and he invested the rest in an account that paid 9% simple interest per year. After one year, he received a total of $840 in interest. How much did he invest in each account?



Answer :

Let's define the next variables

x: amount of money invested in one account

y: amount of money invested in the other account

Milan had $10,000 to invest, then

x + y = 10000 (eq. 1)

The interest Milan gets after one year are: 0.06x and 0.09y. He received a total of $840 in interest, then

0.06x + 0.09y = 840 (eq. 2)

Isolating x from equation 1:

x = 10000 - y

Replacing this result into equation 2,

0.06(10000 - y) + 0.09y = 840

0.06(10000) - 0.06(y) + 0.09y = 840

600 + 0.03y = 840

0.03y = 840 -600

0.03y = 240

y = 240/0.03

y = 8000

Then,

x = 10000 - y

x = 10000 - 8000

x = 2000

He invested $2000 in the account that paid 6% simple interests per year and $8000 in the account that paid 9% simple interests per year

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