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$12,000 is split between two investments. One account offers 4% simple interest and the other...

Question:

$12,000 is split between two investments. One account offers 4% simple interest and the other offers 6% simple interest. The individual earns $600 in interest in the entire year. How much money should be invested in each account to earn $600 in interest for a year?

Averages:

Averages are useful to make decisions involving large numbers and quantities. To find the average of something, you take the different instances total and divide them by the total quantity to get an average. For example, if you have 11, 17, and 19, the average is found by taking 46 (11 + 17+ 19) and dividing by 3 for an average of 15.

Answer and Explanation:

In order to find out how much should be invested in each account, we want to know what interest rate will return $600.

  • $600 / $12,000 = 5%

Now that...

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Law of Averages: Definition & Formula

from General Studies Math: Help & Review

Chapter 5 / Lesson 8
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