Question

Jolene invests her savings in two bank accounts, one paying 4 percent and the other paying 10 percent simple interest per year. She puts twice as much in the lower-yielding account because it is less risky. Her annual interest is 3996 dollars. How much did she invest at each rate?

Answer 1

$ 22200 in higher yielding bank and $ 44400 in lower yielding bank

Explanation:

Jolene invests in two bank accounts. The first account gives a 4% interest per year and the second bank gives a 10% interest rate per year.

She puts twice as much in the lower yielding bank account. Let us denote the amount put in high yielding bank account by
`x`. Lower yielding bank account will have
`2x`.

`Interest\text{ }per\text{ }year=Principal* Interest\text{ }rate`

Interest from lower yielding bank =
`(4)/(100) * 2x=(8x)/(100)`

Interest from higher yielding bank =
`(10)/(100) * x=(10x)/(100)`

Total Interest per year = $ 3996 =
`(8x)/(100) +(10x)/(100)=(18x)/(100)`

`x=22200 \$`

∴ Jolene invested $ 22200 in higher yielding bank and $ 44400 in lower yielding bank.