Question

Last year, Ravi had 20,000 to invest. He invested some of it in an account that paid 5% simple interest per year, and he invested the rest in an account that paid 9% simple interest per year. After one year, he received a total$1680 of in interest. How much did he invest in each account

Answer 1

Ravi invested $3000 in the account that paid 5% interest and $17000 in the account that paid 9% interest.

Step-by-step explanation:

To solve this problem, we can use a system of equations. Let's assume that Ravi invested x dollars in the account that paid 5% interest, so he invested (20000 - x) dollars in the account that paid 9% interest. The interest earned from the 5% account would be 0.05x dollars, while the interest earned from the 9% account would be 0.09(20000 - x) dollars. Since the total interest earned is $1680, we can set up the equation:

0.05x + 0.09(20000 - x) = 1680

Simplifying the equation, we get:

0.05x + 1800 - 0.09x = 1680

Combining like terms, we have:

-0.04x + 1800 = 1680

Subtracting 1800 from both sides, we get:

-0.04x = -120

Dividing by -0.04, we find:

x = 3000

Therefore, Ravi invested $3000 in the account that paid 5% interest, and he invested $(20000 - 3000) = $17000 in the account that paid 9% interest.

Answer 2

To solve Ravi's investment amounts, set up an equation based on interest earned from both accounts and solve for 'x', which represents the amount invested in the 5% account.

Step-by-step explanation:

Ravi wants to find out how much he invested in each account. Since he has two different simple interest rates, we'll call the amount invested at 5% 'x' and the amount invested at 9% '20,000 - x'. To find 'x', we set up the equation based on the total interest received: 0.05x + 0.09(20,000 - x) = 1,680. Solving for 'x' gives us the amount invested in the 5% account, and subtracting that from 20,000 gives us the amount invested at 9%.