Susan invested a total of $13,000 in two accounts. One account pays 4% interest and the other...

Question:

Susan invested a total of $13,000 in two accounts. One account pays 4% interest and the other account pays 6% interest. The total return from both accounts was $680.

How much was invested in each account?

Multiple Investments:


Investing different amounts at multiple interest rates can fetch a very good overall return and is an example of proper investment planning. Investors often plan their investments this way by keeping multiple deposits at different banks.

Answer and Explanation:


Let amount invested in one account be X and the other be $13,000 - X. Therefore,

0.04X+.06(13,000-x) = $680

0.04X + 780 - 0.06X = $680

.02X = 100

X = $5,000

$13,000 - X = $8,000

amt invested at 4% rate of interest=$5,000

amt invested at 6% rate of interest=$8,000


Learn more about this topic:

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How to Calculate Interest Expense: Formula & Example

from Financial Accounting: Help and Review

Chapter 5 / Lesson 18
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